elzálogolni

Elzálogolni is a Hungarian verb that translates to "to pawn" or "to pledge" in English. It refers to the act of giving an item of value to a pawnbroker as security for a loan. The borrower receives a sum of money immediately, and the item is held by the pawnbroker until the loan is repaid, usually with interest. If the loan is not repaid within a specified period, the pawnbroker has the right to sell the pawned item to recover their money.

This practice is common for individuals needing quick access to cash without the need for credit checks or lengthy approval processes. The value of the loan is typically a fraction of the item's market value. Common items pawned include jewelry, electronics, tools, and musical instruments. The terms of the pawn agreement, including the loan amount, interest rate, and repayment period, are usually outlined in a contract. The concept of pawning has a long history, existing in various forms across different cultures for centuries. In Hungary, the verb elzálogolni is used to describe this specific transaction.