Pawnshops: Are They Really a Solution for the Vulnerable Population?
Pawnshops: Are They Really a Solution for the Vulnerable Population?
Author(s): Arturo García Santillán, Jesica J. Ramos Hernández, Sara Hernández-González, Patricia Rivera-SantiagoSubject(s): National Economy, Financial Markets, Socio-Economic Research
Published by: Asociaţia de Cooperare Cultural-Educaţională Suceava
Keywords: Pawnshops; credit; interest rate; loan;
Summary/Abstract: Credit plays a significant role in the country´s economy, as much as the financial system, but what happens when a large part of the population has difficulties to access credit? Because of the former, the main aim of this essay is to analyze the viability of access to a credit modality through a pawnshop versus the alternative of a bank loan. For that, calculations of overdue amortizations were made. The results allow us to say that despite being more easily accessible for vulnerable population, the option of a pawn broking credit incurs in higher costs compared to a bank loan.
Journal: Ecoforum
- Issue Year: 6/2017
- Issue No: 1
- Page Range: 0-0
- Page Count: 7
- Language: English