PAWNBROKER Meaning and
Definition
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A pawnbroker is a licensed individual or business that provides short-term loans to individuals in exchange for items of value, such as jewelry, electronics, or collectibles. The term "pawn" refers to the act of depositing an item in exchange for a loan, with the understanding that the item can be reclaimed upon repayment of the loan along with any associated interest and fees.
The role of a pawnbroker involves assessing the value of the item being offered as collateral and determining the loan amount that can be extended. This evaluation is typically based on the item's condition, market demand, and resale potential. Pawnbrokers often have a solid understanding of various types of valuables and their current market values.
Pawnbrokers provide loans that are secured by the collateral deposited. In case the borrower is unable to repay the loan, the pawnbroker has the right to sell the item in order to recover the loan amount and charges. The borrower is not liable for any outstanding debt beyond the value of the item.
Aside from pawn loans, pawnbrokers may also engage in the buying and selling of various items of value. They often operate retail storefronts where customers can purchase second-hand or discounted merchandise. Furthermore, pawnbrokers may offer services such as check cashing, money transfers, and the purchase of gold and other precious metals.
Pawnbrokers play an important role in providing financial assistance to individuals who may not qualify for traditional loans or prefer not to enter into lengthy credit agreements. They offer a short-term borrowing solution that allows individuals to access immediate funds while keeping possession of their valuable possessions.
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One who is licensed to lend or advance money on the security of movable property deposited.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Common Misspellings for PAWNBROKER
Etymology of PAWNBROKER
The word "pawnbroker" has a multi-layered etymology. It is derived from the combination of two Old French words: "pan", meaning "pledge" or "pawn", and "broche", meaning "needle".
The Old French word "pan" comes from the Latin word "pignus", which means "pledge" or "pawn". This Latin term originated from the Proto-Indo-European root "*p(e)ig-", meaning "to fasten" or "to bind".
The second Old French component, "broche", is related to the Latin word "brocca", which means "pointed tool" or "spit". This term evolved from the Proto-Indo-European root "*bherek-", meaning "to pierce" or "to stick".
Similar spelling word for PAWNBROKER
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