By The Eye desk · Last verified 28 September 2026

Under the Pawnbrokers Act 2015, a Singapore pawnbroker can charge interest of at most 1.5 per cent a month. You have six months to redeem your item by repaying the loan plus interest, and paying the interest can extend it. If you don’t redeem it, the pawnbroker must send a Notice of Forfeiture within two months. If you still don’t redeem within a month of that notice, the item becomes the pawnbroker’s. The debt ends there: the most you can lose is the item.

Quick facts

• Maximum interest: 1.5% a month, or 18% a year.
• Redemption period: six months, extendable by paying the interest.
• You must be 18 or older to pawn.
• Unredeemed items are forfeited after a formal notice; there are no more auctions.
• Pawnbrokers must give you an indicative valuation.
• If they lose or damage your item, they must compensate you.

How much does it cost?

To redeem, you repay the loan plus interest of no more than 1.5 per cent of the loan for each month. On a S$1,000 loan kept for six months, that’s up to S$90, so you’d repay S$1,090. Some pawnshops offer a lower rate for the first month as a promotion.

What happens if I can’t redeem?

1. During the six months, and until the item is forfeited, the pawnbroker can’t sell it.
2. Within two months of the redemption period ending, the pawnbroker must send you a Notice of Forfeiture.
3. If you don’t redeem within a month of that notice, the item becomes the pawnbroker’s property.

Pawnbrokers no longer sell unredeemed items at public auction and return any surplus. Instead, the item is forfeited and your debt is wiped out.

What protections do I have?

• An indicative valuation of your item when you pawn it, and a fresh one at the end of the redemption period.
• Compensation, based on that valuation, if the item is lost or damaged.
• A replacement pawn ticket straight from the pawnbroker if you lose yours.
• The option to sell your pawn ticket to a pawnbroker.

The WahLiao Verdict

A pawn loan’s risk is capped at the item; you can’t fall into spiralling debt. But 18 per cent a year is still expensive, so borrow for months, not years. Compare valuations between shops before you hand anything over, and put the forfeiture date in your calendar.

Questions people ask

Can I extend beyond six months?

Yes, if you and the pawnbroker agree; paying the interest usually renews it.

I lost my pawn ticket. What now?

Ask the pawnbroker for a replacement; some charge a small fee.

Can someone else redeem for me?

Usually yes, with the pawn ticket and authorisation; check with the pawnshop.

Is pawning cheaper than a moneylender?

The cap is lower: 1.5 per cent a month against a licensed moneylender’s 4 per cent. The Ledger’s moneylender guide has the details.

Sources: Ministry of Law, Registry of Pawnbrokers, information for pawners; Ministry of Law, changes to the pawnbroker framework; ValueMax on a representative pawn loan. This is general information, not financial advice.

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