DictionarypawnLoan security
noun / verb

pawn

An item pledged, or the act of pledging it, as security for a loan.

He pawns his watch to cover the bill.

Etymology

The older French word meant a pledge or security. Pawn preserves that financial sense for an object deposited to secure repayment of a loan.

More examples

  • The necklace remained in pawn for a month.
  • She redeemed the pawn after repaying the loan.
  • They pawned several items during the difficult winter.

Forms

pawn · pawns · pawned · pawning

pawnbroker noun — a lender who accepts goods as security

Similar words

pledge
Offer property as security, not necessarily through a pawnbroker.
collateral
The property securing a loan rather than the act of pawning it.