Higher loans and lower rates: CMP tackles the issue of purchasing power

Crédit Municipal de Paris, a committed and supportive institution, has redesigned its pawnbroking service to make it more advantageous for all its customers.

From April 4, 2022, the institution will offer lower interest rates, higher loan amounts and greater access to service.

Crédit Municipal de Paris has been providing Parisians with a social pawnbroking service since 1637. To this day, customers using this service can obtain a sum of money in exchange for the temporary deposit of an asset. The process is simple, fast and open to all, with no means-testing. Items that can be pledged include jewelry, watches, paintings, bicycles, bottles of wine and musical instruments. The loan, based on an auctioneer's estimate of the item's value, can range from €30 to €5 million.

Pawnbroking is a simple, cost-effective financial solution for anyone in need of short-term liquidity. Driven by a social mission, Crédit Municipal de Paris is determined to offer its customers an ever more attractive and flexible service.

To this end, four key measures will be implemented from April 2022:

- Interest rates on loans have fallen sharply. Rates have fallen by 15% in the space of a year. Never before in the company's history has such a reduction been decided. Loans taken out are now more advantageous financially for all customers, whatever the size of their loan.

- The range of loans benefiting from the lowest interest rate has been extended. Until now, the lowest rate (2%) applied to loans from €30 to €300. This rate now applies to loans of up to €500. This measure has been designed primarily for vulnerable groups, to simplify their access to liquidity and limit their financial difficulties over the long term.

- The loan amount for each item increases. At Crédit Municipal de Paris, experts estimate the value of the pledged item on the spot; then, until now, the amount of the loan granted averaged 54% of the estimated value of the item. Now, for an object of the same value, the amount of the loan granted is higher, reaching 60% of the estimated value.

- Access to the pawnbroking service has been extended and simplified. Customers wishing to pawn an item can now visit Crédit Municipal de Paris without an appointment in the morning - where previously an appointment was required. Customers who wish to do so may, of course, continue to make an appointment.

These measures deliver tangible benefits for all our customers. Here are a few examples:

* A person depositing a piece of jewelry worth €680 would previously have obtained a loan of €370 with an interest rate of 7.80%.

-> Now, this person can obtain a loan of €410 at 2% interest, benefiting from both the increase in the estimate/loan ratio and the widening of the lowest interest rate bracket.

* A person depositing a work of art worth €21,700 would previously have obtained a loan of €11,718 with an interest rate of 4.90%.

-> This person can obtain a €13,020 loan at 4. 60% interest, benefiting from both the rise in the estimate/loan ratio and the general fall in rates.

"Crédit Municipal de Paris has adopted a new Strategic Plan for 2022, which we wanted to be particularly ambitious. These initial measures reflect our determination to strengthen the institution's social mission and assert our role as a committed lender to all Parisians and Ile-de-France residents."

Frédéric Mauget, Director, Crédit Municipal de Paris

"Increasing customer satisfaction has always been at the heart of our concerns. By offering higher loans and lower rates, we intend to show all customers, loyal or new, that Crédit Municipal de Paris is, more than ever, a place of solutions, thought out for them."

Fanny Kopf, Pawnbroker Manager

Find out more about pawnbroking at pretsurgage.creditmunicipal.fr