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Pawn

It refers to the an item of personal belonging and of value higher than the loan, pledged as security or collateral for a loan or debts. Such personal belonging or property is deposited with pawnbrokers who has the right to encash such pawns incase there is a default in repayment of the loan. The interest rates are very high and the loan amounts are small. Pawnbrokers are licensed by the government.

 
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