PAWNSHOPS: ARE THEY REALLY A SOLUTION FOR THE VULNERABLE POPULATION?

Authors

  • Arturo GARCÍA-SANTILLÁN Universidad Cristóbal Colón Veracruz, MEXICO
  • Jesica RAMOS-HERNÁNDEZ Universidad Cristóbal Colón Veracruz MÉXICO
  • Sara HERNÁNDEZ-GONZÁLEZ Universidad Cristóbal Colón Veracruz, MÉXICO
  • Patricia RIVERA-SANTIAGO Universidad Cristóbal Colón Veracruz, MÉXICO

Keywords:

Pawnshops, credit, interest rate, loan,

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.

Author Biographies

Arturo GARCÍA-SANTILLÁN, Universidad Cristóbal Colón Veracruz, MEXICO

Researcher professor and doctoral program coordinator at UCC Business School Universidad Cristóbal Colón.

Jesica RAMOS-HERNÁNDEZ, Universidad Cristóbal Colón Veracruz MÉXICO

Second year doctoral student in Management Science at UCC Business School. Universidad Cristóbal Colón  

Sara HERNÁNDEZ-GONZÁLEZ, Universidad Cristóbal Colón Veracruz, MÉXICO

Master Business Administration students at UCC Business School Universidad Cristóbal Colón  

Patricia RIVERA-SANTIAGO, Universidad Cristóbal Colón Veracruz, MÉXICO

Master Business Administration students at UCC Business School  

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Published

27.01.2017

Issue

Vol. 6 No. 1 (2017)

Section

Accounting, Finance, Statistics and Economic informatics

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