Bilyonaryo - Money

BSP: More people turn to pawnshops for quick cash amid the pandemic

With Covid-19 crippling many small businesses, the pawnbroking industry has seen a surge in demand for loans as more people liquidate items for fast cash.
In a virtual briefing Thursday, the Bangko Sentral ng Pilipinas reported that loans provided by pawnshops increased by P4 billion last year.
Dindo Santos, BSP Financial Supervision Department 9 director, said their survey among major pawnshops showed a growth in pledge loans or “sangla” in recent months.
“Moreover, based on the business model of pawning, this serves as an immediate source of funds for individuals. And as we all know, this is used for consumption purposes such as basic needs, for food, education, health, clothing, and shelter,” he said.
During the same briefing, BSP Governor Benjamin Diokno said pawnshops’ assets reached P96.9 billion by end-2021, up 4.7 percent from the previous year’s P92.5 billion. Pledge loans rose 2.7 percent to P54.5 billion.
To date, the pawnshop industry’s total network size reached 15,388. (PNA)