Short term Pawning of Gold - Pawn shops ?

samsmoot

A recent Fixed Sum Loan Agreement with Albemarle and Bond goes like this:

Amount of Credit: £205
Duration of Agreement: 6 Months
Total Amount Payable: £315.58
Monthly Interest: £18.43
Monthly Interest Rate: 8.99%
APR: 137.0%
Rate of Interest: 107.88%
Weight: 23.59 Grams

This was all 9ct gold, some broken.

100smiles100

samsmoot wrote: »

A recent Fixed Sum Loan Agreement with Albemarle and Bond goes like this:

Amount of Credit: £205
Duration of Agreement: 6 Months
Total Amount Payable: £315.58
Monthly Interest: £18.43
Monthly Interest Rate: 8.99%
APR: 137.0%
Rate of Interest: 107.88%
Weight: 23.59 Grams

This was all 9ct gold, some broken.

That's brilliant - Exactly - the kind of example I was looking for !
Thank you for taking the time to post the info.
Gives me an idea of the kind of terms I could expect.

paddyrg

100smiles100 wrote: »

Thanks for the info !

Can I just clarify my understanding based on the figures given.

If I borrowed £100 choosing not to pay any interest for the 5 months then I would have to pay £127.60 in order to get the item back after 5 months ?

IF the interest rate was just 5% (not the 8.99% as suggested above)
IF they will allow you to not repay for 5 months
Then yes.

If the interest is 8.99% MONTHLY and they compound the interest and allow you to not pay monthly interest payments, then for each £100 after 5 months you'd pay £154

100smiles100

paddyrg wrote: »

IF the interest rate was just 5% (not the 8.99% as suggested above)
IF they will allow you to not repay for 5 months
Then yes.

If the interest is 8.99% MONTHLY and they compound the interest and allow you to not pay monthly interest payments, then for each £100 after 5 months you'd pay £154

OK , Thanks .