Pawnshops issue loans worth ₽302 billion in 2024
The specified amount exceeds the 2023 figure. The growth was driven by a sustainable increase in gold prices. Specifically gold items are used as collateral for 94% of all loans issued. However, the number of agreements concluded remained the same – 16.6 million per year.
Owing to the rise in gold prices, the average loan amount was up from ₽16,000 to ₽21,000. The effective interest rate on loans granted by pawnshops did not exceed 120% per annum. The rates differ significantly depending of the type of collateral – for example, those on loans secured by motor vehicles are usually lower. Pawnshops offer special loan terms for certain groups of individuals – pensioners, people with disabilities, and parents with multiple children.
Large pawnshop chains actively develop digital communication channels: more than half of them issue non-cash loans and accept online payments.
Most borrowers seek to repay their loans independently to have the collateral back. Loans repaid this way account for 84% of all loans. Small pawnshops focused on retaining their client base report an even larger percentage. The remaining loans are repaid by selling the pawned item. If the sale price exceeds the borrowers’ liabilities, the client retains the right to request the pawnshop to return the difference for three years.
More details are available in the publication Pawnshop Market Trends in 2024.