The Increasing Demand for Instant Credit in MonteCredit’s Pawn Loan Activity

The Transplant Coordination of MonteCrédit, the heir institution of the Montes de Piedad, recognizes that the need for “instant” credit is increasing with inflation and through its offices, four in the autonomy in León, Burgos, Salamanca and Valladolid, they pass every more than three new clients a day, with an estimated growth of their gold and platinum jewelry pawn loan activity of ten points compared to other years.

The director of MonteCredit, Ramón Alba, tells Ical that they move between nine and ten million in annual assets, in loans for “these times,” and about 15,000 people pass through their offices each year, and this year they predict that they could grow by double digits.

Of course, it makes it clear that in the last decade, the Montes de Piedad have stopped being a recurring financial entity during crises, to become another alternative in financing citizens. “We have left cyclical activity, but a more pronounced rebound has been noted in recent months after the summer, with a September in which the overall credit of the sector usually increases, in which we have noticed an increase of almost ten percent” .

The head of the entity promoted by the Fundación Obra Social de Castilla y León (Fundos) highlights that they already have “more than three people a day entering their offices for the first time” to make a pledge or pledge loan contract. A fact that, in his opinion, shows that the product they offer “is still alive, it is used, people look for it and use it.” In addition, they have “very recurring” customers for a “timeless” product that is still on the market, today as another alternative for financing, not a last resort.”

“Now they come to us on a daily basis,” the senior executive told Ical, to specify that the average amount of operations has also grown and if the previous year was just over 700 euros, this year it is around 800.

Ramón Alba also stated that despite the increase in operations due to the need for instant liquidity, the delinquency rate is not growing.