Pawnshop Day (Shichiya no Hi)

What is Pawnshop Day?

July 8th is "Pawnshop Day" in Japan. This anniversary was established to help people correctly understand "shichiya" (pawnshops), a financial and distribution system that has long been rooted in Japan. The date comes from a wordplay where "shichi" (7) and "ya" (8) combine to sound like "shichiya" (pawnshop).

The origin of Pawnshop Day

Pawnshop Day was established by the National Federation of Pawnshop Cooperatives. The goal is to spread awareness of the role and social significance pawnshops have played, and to deepen understanding of this type of business.

• Date: July 8th
• Established by: National Federation of Pawnshop Cooperatives
• Origin: Wordplay on "shichi" (7) and "ya" (8)

What is a pawnshop?

A pawnshop is a business model where customers deposit an item and borrow money using that item as collateral. Unlike banks and other financial institutions, pawnshops are notable for not requiring credit checks or guarantors.

• Because the loan is secured by an item, repayment obligations are limited
• If the loan isn't repaid, the item becomes the property of the pawnshop
• Pawnshops operate under a license system based on the Pawnbroker Business Act (enacted in 1950), which also sets limits such as the maximum interest rate

The history of pawnshops in Japan

The origins of pawnshops in Japan are said to trace back to the Kamakura through Muromachi periods. By the Edo period, they were widely used as a financial resource that supported ordinary people's lives, becoming a go-to solution for unexpected expenses.

Pawnshops in the Edo period

In the towns of Edo, pawnshops were an indispensable part of daily life. The system of temporarily depositing kimono and other household items to raise funds played a role in supporting the lives of ordinary people.

The role of pawnshops today

Even today, pawnshops operate as legitimate businesses regulated by law. Many shops handle brand-name goods, precious metals, and watches, combining both a financial function and a role in the reuse/resale culture.

• A way to raise funds without relying on personal information or credit checks
• If you don't want the item back, selling it is also an option
• Plays a part in the secondhand goods market

Fun facts about pawnshops

• "Ichiroku Bank": Because 1 plus 6 equals 7 ("shichi," which sounds like the word for pawn), pawnshops were once nicknamed "Ichiroku (One-Six) Bank." They were also called "Nanatsu-ya" ("Seven Shop").
• Pawnshop vocabulary: The pawned item is called "shichigusa," pawning an item to borrow money is "shichi-ire," and repaying the loan to get it back is "shichi-uke."
• Redemption period: Under the Pawnbroker Business Act, the period before an unredeemed item becomes the pawnshop's property is, as a rule, at least three months.
• No collection calls: If you can't repay in time, the item is simply forfeited, and the pawnshop does not pursue you for repayment.

A day to learn about a system that has long supported people's lives

Pawnshop Day on July 8th is an opportunity to take a fresh look at pawnshops, a presence that has supported people's lives throughout a long history. By learning about their origins and role, we can better understand the place pawnshops hold in Japanese society.