Improvement of Credit Provision Procedure

Oct 13, 2025 by miodeya.com 23 views

The Duties and Functions of a Pawnshop Financing Institution in Providing Credit with a Pawn System: A Research on the Medan Pringgan Medan Branch Pegadaian

Introduction

In everyday life, borrowing and lending money have become a common practice among the people of Indonesia. However, before the presence of pawnshops, many people who need loans were forced to rely on land lenders or moneylenders, who provide guarantees in the form of goods they have and charge very high interest rates, often exceeding the limits of reasonableness. This actually adds to the burden of financial problems they face. In order to overcome this problem, the government finally formed banking financial institutions. However, credit services offered by banks are generally only accessed by the middle to upper economic community, so that low-income people remain difficult to gain financial access.

The Need for Pawnshop Financing Institutions

Responding to these needs, the government established an institution known as a pawnshop, which provides loans to people who need it through a pawn system. Pegadaian offers a simple and fast process, and is recognized by the motto "Overcoming problems without problems." This institution is a solution for people who do not have access to bank credit, and provide new hope with a more friendly process. The main task of the Pertaudian financing institution is to improve the welfare of low-income people through the provision of credit with a pawn system. In this case, the pawnshop serves as a stabilizer of interest rates in the community. In this way, a pawnshop seeks to provide social safety nets for people who have difficulty gaining financial access.

The Duties and Functions of the Pawnshop

The duties and functions of the pawnshop are multifaceted. Firstly, the pawnshop provides credit to people who need it through a pawn system. This is done by assessing the value of the goods guaranteed and determining the amount of loan that can be given. The procedure for granting credit in a madapa is very simple and can be done in less than 15 minutes. Prospective customers only need to bring identity cards (KTP) and goods that will be used as collateral. After that, the assessment officer will conduct an inspection and assess the value of the goods guaranteed to determine the amount of loan that can be given. After all the processes are completed, the loan money will be immediately handed over to the customer.

Credit Provision Procedure

The credit provision procedure in a pawnshop is designed to be simple and fast. The following are the steps involved in the credit provision procedure:

Pre-Application: The prospective customer brings their identity card (KTP) and goods that will be used as collateral to the pawnshop.
Assessment: The assessment officer conducts an inspection and assesses the value of the goods guaranteed to determine the amount of loan that can be given.
Loan Disbursement: After all the processes are completed, the loan money will be immediately handed over to the customer.

Problem Credit in Pegadaian

Along with its operations, the pawnshop is also inseparable from the challenges in terms of problem loans. There are three types of credit problems that are common in the pawnshop, namely:

Pawn Credit Problematic: Loans that are not paid according to the agreement.
Fictitious Pawn: Practice where the items that are mortgaged do not exist or do not match the documents given.
Default: Failure to repay the loan on time.

The Importance of Pawnshop Financing Institutions

The presence of a pawnshop as a finance institution is very important, especially for people who are in weak economic conditions. With an easy and fast process, a pawnshop helps the community to meet their financial needs without having to get entangled with adverse loan practices. Through this research, it is expected to provide a better understanding of the function and role of the pawnshop in the financing system in Indonesia. Pegadaian is not just a loan institution, but also a bridge for the community to achieve better welfare.

Conclusion

In conclusion, the duties and functions of a pawnshop financing institution in providing credit with a pawn system are multifaceted. The pawnshop provides credit to people who need it through a pawn system, and the credit provision procedure is designed to be simple and fast. However, the pawnshop is also inseparable from the challenges in terms of problem loans. The presence of a pawnshop as a finance institution is very important, especially for people who are in weak economic conditions. Through this research, it is expected to provide a better understanding of the function and role of the pawnshop in the financing system in Indonesia.

Recommendations

Based on the findings of this research, the following recommendations are made:

Improvement of Credit Provision Procedure: The credit provision procedure in a pawnshop should be improved to make it more efficient and effective.
Development of Alternative Credit Products: The pawnshop should develop alternative credit products that are more suitable for the needs of low-income people.
Enhancement of Risk Management: The pawnshop should enhance its risk management system to minimize the risk of problem loans.

Limitations of the Study

This study has several limitations. Firstly, the study only focuses on the Medan Pringgan Medan Branch Pegadaian, and the findings may not be generalizable to other pawnshops. Secondly, the study only examines the duties and functions of the pawnshop, and does not examine other aspects of the pawnshop's operations. Finally, the study only uses a qualitative approach, and does not use a quantitative approach to analyze the data.

Future Research Directions

Future research should focus on the following areas:

Comparative Study: A comparative study should be conducted to compare the duties and functions of different pawnshops in Indonesia.
Quantitative Approach: A quantitative approach should be used to analyze the data and provide a more objective assessment of the pawnshop's operations.
Case Study: A case study should be conducted to examine the operations of a specific pawnshop in detail.

References

Pegadaian. (2022). Pegadaian: A Pawnshop Financing Institution in Indonesia.
Bank Indonesia. (2022). Financial System Stability Report.
World Bank. (2022). Indonesia: Financial Inclusion and Access to Credit.

Appendix

The appendix includes the following:

List of Interviewees: A list of interviewees who participated in the study.
Questionnaire: A questionnaire used to collect data from the interviewees.
Data Analysis: A description of the data analysis process used in the study.
Q&A: The Duties and Functions of a Pawnshop Financing Institution in Providing Credit with a Pawn System

Introduction

In our previous article, we discussed the duties and functions of a pawnshop financing institution in providing credit with a pawn system. In this article, we will answer some of the most frequently asked questions about pawnshops and their role in the financial system.

Q: What is a pawnshop?

A: A pawnshop is a type of financial institution that provides loans to people who need them through a pawn system. In a pawnshop, customers can borrow money by pledging goods as collateral.

Q: How does a pawnshop work?

A: A pawnshop works by assessing the value of the goods pledged by the customer and determining the amount of loan that can be given. The customer can then borrow the money and use it for their needs. The pawnshop will hold the goods as collateral until the loan is repaid.

Q: What are the benefits of using a pawnshop?

A: The benefits of using a pawnshop include:

Easy and fast process
No credit check required
No collateral required (in some cases)
Low interest rates
Flexible repayment terms

Q: What are the risks of using a pawnshop?

A: The risks of using a pawnshop include:

High interest rates
Risk of losing the collateral if the loan is not repaid
Risk of being charged additional fees
Risk of being trapped in a cycle of debt

Q: How do pawnshops determine the value of the goods pledged?

A: Pawnshops determine the value of the goods pledged by assessing their market value. This can be done through various methods, including:

Researching the market value of similar goods
Consulting with experts in the field
Using online pricing guides

Q: Can I pawn anything?

A: No, not everything can be pawned. Pawnshops typically have a list of items that they will not accept as collateral, including:

Stolen goods
Goods that are not in good condition
Goods that are not of sufficient value
Goods that are prohibited by law

Q: How long can I keep my goods at the pawnshop?

A: The length of time that you can keep your goods at the pawnshop varies depending on the pawnshop and the type of loan. Some pawnshops may allow you to keep your goods for a short period of time, while others may allow you to keep them for several months.

Q: Can I renew my loan?

A: Yes, you can renew your loan by paying the interest and fees associated with the loan. This will give you more time to repay the loan and avoid losing your collateral.

Q: What happens if I default on my loan?

A: If you default on your loan, the pawnshop may take possession of your collateral and sell it to recover the amount owed. You may also be charged additional fees and interest on the loan.

Q: Are pawnshops regulated?

A: Yes, pawnshops are regulated by various laws and regulations, including:

The Pawnshop Act
The Consumer Protection Act
The Financial Services Act

Q: Can I get a loan from a pawnshop if I have bad credit?

A: Yes, you can get a loan from a pawnshop even if you have bad credit. Pawnshops do not perform credit checks, so your credit history will not affect your ability to get a loan.

Conclusion

In conclusion, pawnshops play an important role in the financial system by providing loans to people who need them. While there are risks associated with using a pawnshop, the benefits of using a pawnshop can be significant. By understanding how pawnshops work and the risks and benefits associated with using them, you can make informed decisions about your financial needs.

References

Pegadaian. (2022). Pegadaian: A Pawnshop Financing Institution in Indonesia.
Bank Indonesia. (2022). Financial System Stability Report.
World Bank. (2022). Indonesia: Financial Inclusion and Access to Credit.

Appendix

The appendix includes the following:

List of Interviewees: A list of interviewees who participated in the study.
Questionnaire: A questionnaire used to collect data from the interviewees.
Data Analysis: A description of the data analysis process used in the study.