Pawnshops in Russia issued loans totaling ₽302 billion in 2024, surpassing the previous year’s figures. This growth is attributed to a steady rise in gold prices, with gold items serving as collateral for 94% of all loans. Despite this increase, the number of agreements remained unchanged at 16.6 million annually.
The surge in gold prices led to an increase in the average loan amount from ₽16,000 to ₽21,000. The effective interest rate on pawnshop loans did not exceed 120% per annum, though rates vary depending on the type of collateral. For instance, loans secured by motor vehicles typically have lower rates. Pawnshops also offer special terms for pensioners, people with disabilities, and parents with multiple children.
Large pawnshop chains are expanding their digital communication channels; over half now provide non-cash loans and accept online payments.
Most borrowers repay their loans independently to reclaim their collateral. Such repayments account for 84% of all loans. Smaller pawnshops focusing on client retention report even higher percentages. Loans not repaid directly result in the sale of the pawned item. If the sale price exceeds the borrower’s liabilities, clients can request a refund of the difference within three years.
Further information can be found in “Pawnshop Market Trends in 2024.”
