Are pawn loans dangerous? Who and how uses the financial problems of Ukrainians

Pawnshop loans are not as popular and promoted as loans from banks and microcredit organizations, but they exist and even have their advantages.

Segodnya talked to Alexander Boltyan, an expert and analyst at Esperio, and are ready to talk about the pros and cons of such loans.

According to him, a loan at a pawnshop is profitable loan disbursement speedbut the interest and terms of return most disadvantageous compared to a bank loan.

However, if the bank is interested in the purpose of the loan and your history, then the pawnshop is not interested in either the purpose or your solvency, the expert assures.

At the bank you ask for money under documentary support – this is a certificate from the place of work, a certificate of income, a bank statement.

“At the pawnshop, you carry, in addition to your passport, also collateral, which will be valued there and, based on the valuation of this property, you will be given some kind of loan,” Boltyan warns.

Please note that all pawnshops underestimate the value of the goods brought, as take advantage of the client’s needs.

Loans during the war

The National Bank found that after the full-scale invasion of the Russian Federation, the number of loans issued to Ukrainians has significantly decreased.

The market of short-term loans continued to work most actively, but Ukrainians practically stopped issuing loans for 2-5 years.

At the same time, since the beginning of the war, it has been noticeable interest fell on consumer loans.

Segodnya wrote earlier what happens to deposits during the war and told why banks block money on Ukrainian accounts.