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Pawnshop loans rise further due to pandemic

SOURCE OF FUNDS. Loans extended by pawnshops rise especially during the pandemic since the industry serves as an immediate source of funds for borrowers. The Bangko Sentral ng Pilipinas said pawnshop loans rose by PHP4 billion in 2021. (Photo from BSP) MANILA - Loans provided by pawnshops increased year-on-year by PHP4 billion in 2021 as more people needed immediate fund augmentation during the pandemic. In a virtual briefing on Thursday, Bangko Sentral ng Pilipinas (BSP) Financial Supervision Department 9 Director Dindo Santos said their survey among major pawnshops shows 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 PH

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