Pawning has been a way of life in South Asia for centuries. Since of late due to the rapid appreciation of gold value and collateral the general public’s view on pawning has changed rapidly.

Seylan Bank ventured into the pawning business during the year 1997 and has rapidly increased its channels to serve its loyal clients and others who are keen to patronize the bank in order to tideover their short term liquidity needs. Working capital constraints of retailers etc are also met since the cost of borrowing against gold is very low compared to other conventional lending products.

Seylan Bank’s pawning service is a simple and convenient mode of obtaining cash in the easiest method and to retain the appeal for safe lodgment of gold Jewelry especially for the Sri Lankan housewife who dutifully juggles limited resources in order to meet family commitment s from time to time.

The bank has a very flexible payment terms since the period of pledge is 12 months which could be extended by paying only the interest or payment of capital and interest or partly redeem articles, even enhancing the advance based on the value of gold pawned which may have appreciated due to the increase in the gold prices globally. As such, the customer can decide whether to enjoy the benefit or reschedules the out standings.

To provide a quality service, at Seylan Bank’s branches, staff have been handpicked and trained and provide a highly confidential service to ensure clients feel comfortable, in that payments are made within the pawning counter itself.

The customer’s transaction time is reduced and there are no queues or delays even at the time of redemption as the customer has the option to inform the bank in advance regarding the time of redemption which will enable the bank to have the article ready.
As a value addition, the stamp duty payable at the time of pawning is absorbed by the bank.

The bank intends to increase its delivery channels, of 67 banking centres to date and progressively introduce the service to the remaining banking centres in the long term.