Pawnshop License In South Africa

Pawn shops fill a demand for quick and convenient loans for people who don’t want to, or don’t have the time, to apply for loans from their banks. The main business of a pawn shop is to offer short-term credit with high interest rates against pledged goods, but they also buy and re-sell goods from people who want quick cash. Starting a pawn shop requires you to meet all of the stringent requirements for a pawn shop license, including proven experience, a criminal background check and a credit check.

The following renewal process is applicable to all existing, registered second-hand goods dealers and pawnbrokers:

• An application for renewal of registration must be made in terms of section 11 of the Act no more than 180 days and no less than 90 days before the expiry date of the existing registration.

• An application for renewal of registration must be made at the designated second-hand goods officer at the police station in the area in which the business is currently registered.

• A renewal application must be made on a SAPS 601(e) form – ‘Application for Renewal as a SHG Dealer/Recycler’. The form must be accompanied by all the relevant supporting documents (a checklist of these documents is available on the police website here.

A renewal application may only be granted if the dealer/ recycler shows that he/ she still complies with the requirements for registration in terms of the Act.

• If an SAPS 601(e) renewal application has been lodged within the prescribed period, the existing registration remains valid until the SAPS 601(e) renewal application is decided on and a new Certificate of Registration has been issued to the second-hand goods dealer.

• Should a registered second-hand goods dealer decide not to apply for renewal, his/ her registration will terminate upon the expiry date of the current Registration Certificate and he/ she will not be allowed to continue dealing in second-hand goods. Not applying for renewal within the specified time-frame will be regarded as an immediate termination of registration.

• There is no charge for an application for the renewal of registration.

Dealers and the community can go to www.saps.gov.za for more information on the Act, as well as the relevant application forms and other related material.