What is a grace period on my pawn loan? 

  • Updated

In certain states, pawn transactions have two due dates, an original maturity date,
or the date the pawn transaction is due, and the last day of grace which is the date
after which the collateral is considered forfeited. 


The time in between the original maturity date and final due date is the grace period. 


During the grace period, usually 30 days or one calendar month, the pawn transaction remains
active and collateral associated with the pawn transaction is held. Ownership of
the collateral transfers to the pawnbroker after the last day of grace.


What can I do with my loan during the grace period? 


During the grace period, your options remain the same as during the original term
of the pawn.  You have the option to pay your pawn transaction in full, along with
any additional fees and charges accrued during the grace period, with the return of
the collateral pledged or, depending on the state, you can choose to renew
or extend the maturity date of your pawn loan by paying a portion of what is owed.

Normally during the grace period, pawn fees are charged but may do so at a rate
different than those of the terms of the original pawn transaction term and maybe
earned differently than those of the original pawn transaction term, as prescribed
by state law.