Pawnbroking
A pawnbroking business is a commercial activity that lends money to consumers against a pledge in movable property. To operate a pawnbroking business, a permit from the County Administrative Board is required according to the Pawnbroking Act (1995:1000). Pawnbroking can only be operated by Swedish limited companies or equivalent foreign companies within the EEA area.
The borrower does not become personally liable for the loan if it is not repaid - the pledged item is the only security. The pawnbroker determines which goods are accepted as pledges, interest rates, and any fees. The loan period can be up to one year, most commonly four months.
Requirements
- Company form: Only Swedish limited companies or equivalent foreign companies within the EEA area
- Sound business: The County Administrative Board must assess that the company will operate a sound pawnbroking business
- Meet legal requirements: The company must meet the requirements of the Pawnbroking Act (1995:1000)
- Application fee: Varies depending on county
Application procedure
- Geographic jurisdiction: Six County Administrative Boards process applications depending on where the business will be operated (Norrbotten, Örebro, Stockholm, Östergötland, Västra Götaland, Skåne)
- Business description: The application must include a description of the business to be operated
- Supervision: The County Administrative Board exercises supervision over pawnbroking businesses
Operating conditions
- Loan period: Up to one year, most commonly four months
- Security: Only the pledge constitutes security, no personal payment obligation for the borrower
- Scope of business: Loans against pledges to consumers, the pawnbroker determines accepted pledge items, interest rates, and fees