Translation. Region: Russian Federal
Source: Central Bank of Russia
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This year, citizens have become more active in using pawnshop services. Due to an influx of new clients, the number of borrowers increased by 12% over the past six months. Regular clients have also become more frequent users of pawnshops: the number of active loans per borrower has increased from 1.8 to 2 agreements over the past six months.
After the moratorium on the use of the APR (full cost of consumer loans) expired, interest rates on pawnshop loans decreased in the second quarter. About 75% of loans were issued with an APR of less than 100%. The moderate interest rate allows clients to repay the loans themselves and reclaim the collateral. A third of these loans are repaid early, and another quarter within the agreed-upon period. Only 15% of agreements result in the sale of the collateral.
Pawnshops continue to monitor the quality of their client base and collateral portfolio, refusing to issue loans if they suspect the collateral is not the client's property, if there are doubts about the authenticity of the item, or if the client lacks documents.
Read more read in "Trends in the development of the pawnshop market for the first half of 2025."
Preview photo: NMK-Studio / Shutterstock / Fotodom
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