How the cost of a pawn loan is worked out, from one country to another

Nominal rate and APR: do not mix them up

The nominal rate only measures interest, whereas the annual percentage rate of charge includes compulsory fees. Service-Public points out that in France the contract must state this APR and the total amount repayable, with each institution free to set its own rate.

By the day, the fortnight or the month

The accrual method matters as much as the rate. Paris calculates interest and storage fees day by day, Brussels by the fortnight, and the Zurich Pfandleihkasse charges the whole month from its first day, which penalises repayment early in the month.

Rates that vary with the amount borrowed

Many lenders apply bands. As of October 2026, Paris shows an APR of 4.25% up to 500 euros, 9.90% up to 6,000 euros and 5.30% beyond, as detailed on the page about the pawn loan rate in France.

Storage fees: the cost of the vault

Keeping the item safe is often charged separately. In Paris, a storage fee of 1% is added above 500 euros and is included in the APR. In Bordeaux, the November 2022 schedule provided for 2% per half-year between 100 and 6,000 euros.

Pledge fee and administration charges

Some lenders take a one-off sum at the outset. The Geneva public pawn office levies a pledge fee (droit d'engagement) of 6%, whatever the term, and Brussels deducts 3.5% of the estimated value, capped at 60 euros.

What the appraiser who values the item earns

In France, article D514-5 of the Code monétaire et financier caps appraisers' remuneration at 0.50% of the loans granted or renewed. The exact amount is set by each institution's supervisory and guidance board, within that regulatory limit.

Fifteen items of information displayed in branches

Since 1 July 2016, article D514-8-1 has required French institutions to provide information on fifteen categories of items, including fees, the annual effective rate and auction arrangements. This information must be displayed in the customer reception area.

Penalties once the due date has passed

Arrears are expensive in France as in Belgium. Paris charges 0.50% of the capital per fortnight or part fortnight, up to twelve, and Brussels also applies 0.5% per fortnight from day 181, on top of normal interest.

Belgium: a rate that climbs on extension

At the Brussels Mont-de-Piété, the annual rate is 6.5%, or 3.25% for 180 days, and it then rises by four points from the first extension, to 10.5%. The full scale appears on our page on the pawn loan rate in Belgium.

Switzerland: free of charge for small sums in Geneva

The Geneva office charges no interest up to CHF 350, then 5% a year from CHF 351 to 850 and 7.5% above that. Zurich applies 1% a month, as explained on the page about the pawn loan rate in Switzerland.

Algeria, Tunisia, Spain: public benchmarks

The Banque de développement local in Algeria advertises 7.50% a year plus a 1% storage fee, while Tunisia charges 8%. In Madrid, rates ranged from 5% to 8.25% in 2022. See pawn loans in Algeria.

Three examples showing the effect of the bands

Using the Paris schedule for October 2026, one year of borrowing costs about 12.75 euros for 300 euros, 495 euros for 5,000 euros and 1,325 euros for 25,000 euros. Strasbourg states that 106 euros are due after six months for 100 euros borrowed.

Lenders compared

• Crédit Municipal de Paris: Banded APR from 4.25% to 9.90%, a 1% storage fee and day-by-day calculation.
• Mont-de-Piété de Bruxelles: Rate of 6.5% a year raised to 10.5% after extension, with interest counted by the fortnight.
• Caisse publique de prêts sur gages de Genève: Free loans up to CHF 350, then 5% and 7.5% a year, with a one-off pledge fee of 6%.
• Banque de développement local, Algérie: Algerian public bank advertising 7.50% annual interest and a 1% storage fee charged pro rata by the day.

Comparing two pawn loan offers

1. Note, for each lender, the annual percentage rate of charge that applies to the amount you have in mind.
2. Identify one-off charges, administration or pledge fee, and recurring storage fees.
3. Check how interest accrues: by the day, by the fortnight or by the whole month.
4. Calculate the total cost over the term you actually expect, including any extension.
5. Add possible late penalties and sale costs in case you cannot repay.

Stated cost by lender

Documents to request before signing

• Pre-contractual information sheet
• Rate schedule by amount band
• List of storage, administration and sale fees
• Draft contract stating the APR
• Extension and penalty conditions

Common calculation mistakes

• Comparing a monthly Zurich rate with an annual French rate without multiplying it by twelve, which greatly underestimates the cost.
• Forgetting that a 6% pledge fee in Geneva weighs heavily on a loan repaid after just a few weeks.
• Overlooking the four-point rise in the Belgian annual rate, applied from the first 180-day extension at the Mont-de-Piété.
• Assuming a small loan costs less in percentage terms: in Paris, the band from 501 to 6,000 euros is the most expensive.
• Neglecting auction costs, 15% of the hammer price in Paris, which reduce the surplus returned to you.

General information, up to date as of October 2026 and non-contractual: always check the terms with the Crédit Municipal or the institution concerned.