One in three Mexicans between 18 and 70 years old resorts to pawn shops —like the National Monte de Piedad— to attend to an emergencyaccording to the National Financial Inclusion Survey (ENIF).
For hundreds of families in the country, every beginning of the year this situation arises due to the fearful january costwhich often extends to February and March. The excessive expenses of December, the accumulated debts, the pending financial commitments to pay, the Three Wise Men toys and the general increase in prices that usually occur are sufficient reasons for households to consider this option.
Given this situation, The flow of people looking to pawn some property grows between 15% and 30% this seasonaccording to the Mexican Association of Clothing Services Companies (Amespre).
Strike prevents efforts
He Monte de Piedad National It is one of the most emblematic and largest institutions in the clothing segment. With 250 years of operation, it became synonymous with tradition among the country’s families; However, the thousands of people who traditionally come on these dates in search of liquidity They won’t be able to do it this yearbecause he has been on strike since last October 1.
“Families come with the hope of being able to pawn their assetsbut unfortunately it is not possible to attend to them at the moment,” commented Eduardo, a worker at the institution.
According to its latest reports, the National Monte de Piedad has more than 300 branches in the country, in which 7.2 million collateral loans are carried out per yearto 1.16 million clients (63% are women), with an average monthly amount of 3,938 pesos. Its total loan portfolio is around 29,000 million pesos.
Just last year, in 2025, the Monte de Piedad reported that, from January 1 to 11, 211,821 pawns were registeredwith an average loan of 5,487 pesos.
“The times that I have found myself in the need to pawn something, Immediately, I run to the Monte de Piedad. They lend just enough and with rates that are not so high, and they also give you many opportunities to recover your assets,” says Alejandra.
For Amelia It is a “real shame” that it is closed. “You already know that here you can get money quickly and without letting your family know. I usually go about three times a year, with small things, because I always try to get them back.” The option for her is to go to Montepío Luz Saviñón, an institution that she also considers serious.
Competition gains strength
Although it has lost ground, The institution is one of the largest in the garment sectoreven had more than 50% of this segment.
This trend is not only due to new players in the industry, but also to the importance that banks such as Aztec and Coppeltwo institutions focused on the lower-income population, which grant loans simply and quickly, although with higher interest rates than the market.
“This year we will ask for a loan in Coppel, my daughter told me that the Monte was closed and we will choose to go there for the expenses we have pending,” commented Antonio, who assures that He has been a client of Monte de Piedad for 25 years.
How do pawn loans work?
Pawn shops operate in the following way: They lend money in the short or medium term taking movable property as collateral, such as cell phones, screens, jewelry, watches, tools, electronics, musical instruments, automobiles, among others.
The person leaves his pledge and receives a loan less than the value of the objectand agrees to return the money with interest and commissions within a certain period.
However, the lack of clear information or economic urgency can lead to accepting unfavorable conditions. There are cases in which the Total Annual Cost (CAT) exceeds the sum of 150%highlighted the Federal Consumer Prosecutor’s Office (Profeco).
Furthermore, he says, when the person cannot pay on time, they lose their pawned item without the possibility of recovery. Some establishments charge additional commissions due to storage, valuation or endorsement, which considerably increases the debt.
Tips for choosing the best pledge option
The National Commission for the Protection and Defense of Users of Financial Services (Condusef) gives some tips to have the best experience.
- Use this type of credit only in cases of extreme urgency.
- Before pawningcompare at least three pawn shops.
- Check the bulletin board or ask the pawnshop manager information about: interest rate, percentage of the loan and number of endorsements, among others.
- Pay on time, so that they do not charge you default interest and the risk of losing your pledge.
- The interest rate varies according to the additional services that the pawn shop provides.
- Profeco has a Commercial Bureauwhere you can check if the pawnshop’s adhesion contract is duly registered.
Do you have doubts? Write to [email protected]
