 SECURED LOANS IN MEXICO AND ITS EFFECTS, PRESTAMOS PRENDARIOS EN MEXICO Y SUS EFECTOSRufina Georgina Hernandez Contreras, Rosa Maria Medina Hernandez and Rosa Maria Solis Salazar Revista Global de Negocios, 2015, vol. 3, issue 5, 47-58 Abstract: This research examines the process, regulations, pros and cons of secured loans (collateral loan or pawnshop loans) which have proliferated in Mexico in recent years. The study focuses on analyzing financial aspects and the interest rate. Specifically, we examine the cost it represents to the consumer and the economic returns for companies engaged in this business. Two pawnshops that operate nationwide were analyzed. The legal, social and financial aspect of secured loans providers was verified, as well as the financial impact on its consumers. Moreover, a comparison between secured loans and bank loans was performed, as an alternative for consumers and in that manner acquire a reference of the options provided by the Mexican Financial System, through the commercial banking. The study seeks to answer: What is the history of the pawnshops? How much to pawn an item? What are the benefits brought by this type of financing to the Mexican economy? Why are these businesses proliferating? Keywords: Secured Loan; Interest Rate; Interest Cost; Pledged Good; Pawnshop; Pledger (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ibf:rgnego:v:3:y:2015:i:5:p:47-58 Access Statistics for this article Revista Global de Negocios is currently edited by Terrance Jalbert More articles in Revista Global de Negocios from The Institute for Business and Finance Research |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.