Volume : 11, Issue : 3, MAR 2025

CAPITALIZING ON BUSINESS DEVELOPMENT AND CHALLENGES IN THE DIGITAL ERA RESEARCHED BY STUDENTS, PG DEPARTMENT OF COMMERCE WITH COMPUTER APPLICATIONS, MANNAR THIRUMALAI NAICKER COLLEGE MADURAI.

A STUDY ON CUSTOMERS’ PERCEPTION TOWARDS PAWNBROKERS IN MADURAI CITY

NANDHINIDEVI.C, DR. THENMOZHI.G

Abstract

The pawnshop industry is a considerable business today. Small short-term loans are clearly in high demand, and this demand is only increasing.. This method is the oldest method of lending money. Pawnbroking is the service preferred by customers to meet their financial needs.The access to loans through formal banking/financial institutions is less in rural areas when compared to pawnbroking in spite of the higher interest rate offered by pawnbrokers and the possibility of fraudulent activities in pawnbroking. The present study overlooked pawnshop lending because the loans made are small, short-term, collateralized loans typically used by low-income consumers especially rural area people. Pawnshop loans are a valuable instrument that many customers utilize to manage their monthly finances during financial downturns, despite their small principal. It is evident that customer experience is positive being satisfied with the service offered by pawnbrokers as it offers many benefits such as relative affordability compared to other forms of credit, secured loan meaning a lack of debt if repayment cannot be made, and easy accessibility. Therefore the study focuses on understanding the customers' perception towards pawnbrokers in Madurai city and to identify their level of satisfaction in accessing loans and the pawnbroking system. The study also tries to analyze the challenges faced during the process of accessing loan and to provide suggestions for safe and secure fund operation.

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Article No : 67

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References

1. Edwards, Laura & Lomax, Wendy. (2017). Financial credit and social discredit: the pawnbroking dilemma. Journal of Financial Services Marketing. 22. 10.1057/s41264-017-0024-7.https://www.researchgate.net/publication/316525891_Financial_credit_and_social_discredit_the_pawnbroking_dilemma

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