A pawnshop holds your items as security, called collateral, until you repay the loan. She used her vintage watch as collateral at the pawnshop.
Pro Tip 2/3
Repayment Period
You have a set time to repay the loan to the pawnshop or they can sell your item. John had two months to repay the pawnshop before they sold his laptop.
Pro Tip 3/3
Interest Rates
Pawnshops often have high interest rates on loans they give for pawned items. The interest rate at the pawnshop was 20% per month.