Saturday, November 23, 2024
Elvira Nabiullina Governor of the Central Bank of Russia | Official Website

Pawnshop market sees growth in microloans amid higher collateral value

The microloan portfolio expanded by 13% from the beginning of 2024, amounting to ₽62.6 billion. Demand for microloans remained stable: in the first half of 2024, pawnshops concluded slightly more than 4 million contracts on average per quarter. The average microloan amount increased by 8% compared with the previous period and exceeded ₽17,000. Such dynamics were associated with a rise in the value of collateral, which was mainly represented by gold items.

According to the Bank of Russia’s survey, pawnshops mention three main factors determining demand for their services: household incomes, financial inclusion, and household debt burden.

More details are available in the publication Pawnshop Market Trends.

Preview photo: LanKS / Shutterstock / Fotodom

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