At Crédit municipal de Clermont-Ferrand, with inflation, pledging is a recipe

With inflation and declining purchasing power, it is sometimes difficult to make ends meet. In Clermont-Ferrand, Crédit municipal in particular offers pledged loans. Let’s explain how it works.

Faced with inflation, many French people are trying to find solutions to get by financially. In Clermont-Ferrand, at the Crédit municipal, we have seen the emergence of a new type of clientele in recent months. Jean-Yves Clément, director of the Crédit municipal de Clermont-Ferrand branch, explains: “It’s obvious. Since the beginning of the year we have had a group of clients that we have never seen before and of whom we see more. We found pre-COVID activity volumes. The inflationary period causes further demands“.

This public body has above all a social vocation. The plant is based on three activities: pledging loans, granting loans to public employees, employees, retirees and banks. Pledging accounts for the majority of Crédit municipal’s business. “The principle is to deposit an object against which we will lend you a certain amount of money. It is open to everyone, regardless of your situation. It is possible to deposit jewels, objects, paintings, works of art, musical instruments”Explains Jean-Yves Clément. First of all, you need to make an appointment or come to the office on Wednesday morning. All you need is a valid ID and proof of address under the age of three months. The director of the agency says: “We add some particularities according to the objects. For example, for a valuable watch or bag, you will be asked for a purchase invoice or even a certificate of authenticity.“.

An auctioneer will then establish totally free estimates. Jean-Yves Clément insists: “In ten minutes you can get a pawn shop that will correspond to roughly 60-70% of the value of the object. We can help you without giving up ownership of your property“. The average loan amount is between 700 and 800 euros. These are contracts that have a six-month duration, renewable for up to two years. This opens up three scenarios:First option, you can retrieve your item at any time. After a phone call 24 hours in advance, it is prepared for you and you will be asked to repay the loaned capital plus the interest which will be calculated month by month. In a second option, at the end of the six months, you will be asked to pay the interest that has been fixed since the beginning of the contract. If you can’t pay back what was loaned to you, you pay interest and leave for six months, up to two years. In a third option, people cannot recover what they have deposited. In case of non-regularization of the contract, we may have to proceed to an auction which is carried out through our auctioneer“In general, items are sold after several months of delay.

In total, 9 out of 10 people recover what they have deposited. “We are not here for speculative activity. We are here to help people”Recalls Jean-Yves Clément. There are different interest bands, depending on the loan amount granted. The branch manager continues:It affects everyone. Considering the economic situation, it is noted that there are in any case increasingly significant imbalances and amounts of burdens. We have people who use this service for an advance paycheck loan, to pay a bill or an unexpected expense.“.

Jean-Yves Clément defines the typical profile of the client who turns to Crédit municipal: “There is a regular clientele from various communities who are used to using this service. They have gold and are said to be eligible for loans that they will not be able to get in banking institutions“. He adds: “There are also professionals who may have occasional cash flow problems. We meet retirees, with small pensions, who can take advantage of this service for additional income.“. Finally, some choose the pawn shop rather than renting a bank safe. Jean-Yves Clément concludes: “The pawn loan today is the fastest loan formula that can exist. You have an identity document, a proof of address, any object, including jewelry, within ten minutes, once you have made the appointment, you can leave with a loan in advance of your salary. You can get up to € 3,000 per day“. Three quarters of the clientele is female because most of the contracts are established for jewelry.

Leave a Comment