A pawnshop loan is a type of secured short-term loan where individuals can borrow money by using a valuable item (like jewelry, electronics, or instruments) as collateral. We will assesses the item's value and offer a loan based on a percentage of that value. If the borrower repays the loan plus interest within an agreed-upon time, they get their item back, otherwise the loan is forfeited. Also, another option available is to sell the item. In this instance you would be selling the item outright directly to the Pawnshop without the option of picking it up like you would with a collateral loan.