Written answer by Minister for Law, K Shanmugam, to Parliamentary Question on Pawnshops
21 Oct 2013 Posted in Parliamentary speeches and responses
Mr Seah Kian Peng (Marine Parade GRC)
To ask the Minister for Law (a) what is the current number of pawnshops in Singapore; (b) what is the increase in their numbers over the past five years; and (c) what is the current amount of loans secured and percentage of items redeemed.
As of 1 October 2013, there are 201 pawnshops in Singapore. Over the past five years, the number of pawnshops has increased from 114 in 2008 to 191 in 2012, giving an increase of 77 pawnshops during this period.
Pawnbroking loans are essentially secured loans. Under the law, pawnbrokers are allowed to charge an interest rate of no more than 1.5% per month. The majority of consumer loans in Singapore are issued by banks and finance companies. Overall, the amount of pawnbroking loans constitutes around 3% of the amount of consumer loans issued by banks and finance companies.
The total amount of pawnbroking loans granted this year, as at 31 August 2013, is about $3.7 billion. Such loans include loans that are refinanced using the same collateral. Typically, around 95% of pledges are redeemed by pawners.
Last updated on 21 Oct 2013