The kremlin’s Policies Are Driving russians to Pawnshops

russians are facing a catastrophic shortage of working capital to service their loans and cover their daily living expenses. A significant drop in household income, high bank interest rates, difficulties in obtaining bank loans, and a “blemished” credit history – these and other problems are forcing russian citizens to turn to pawnshops more often. In 2025, the flow of customers increased by 15%; in 2026, the trend continued at a rate of 7–10% per month. Pawnshops’ net profit grew by approximately 50% compared to the previous year.

According to experts, this year the pawnshop market in the rf may reach 1 trillion rubles and begin to compete in terms of volume with niche marketplaces (990 billion rubles) and the fishing industry (1.1 trillion rubles). The sector is developing so effectively that one of the leading players in the russian market, the “mgkl group”, is negotiating the purchase of a bank. In other words, pawnshops in russia are becoming a mainstream financial instrument.

The public’s turn to pawnshops in russia reflects a lack of trust in official banking credit policies. Currently, the number of loans issued by russian pawnshops stands at 2–2.5 million per year, with the average loan amount trending steadily upward; luxury watches, jewelry, and cars are increasingly being used as collateral. The rejection rate for customers is very low – 0.4% – so russians can quickly get cash, provided, of course, they have something to pawn. At the same time, according to the central bank of the rf, in January 2026 alone, customers withdrew a record amount since 2022 from their bank cards – 1.6 trillion rubles.