Lombards as an alternative to banks
People deposit cars, washing machines, mobile phones and lawn-mowing machines.
Minsker have found lombards as an alternative to banks. Reluctant to gather a necessary paperwork in order to get a loan, they deposit various things. In order to get a loan in lombards, it is sufficient to have a passport and be older than 18 years.
The Minsk-based Guzul told the European Radio for Belarus as follows:
“People who are not sure that they will be able to pay back a bank loan, bring us a certain object and we issue a half of the cost".
Various things ranging from a mobile phone to a wahing maching can be deposited in a lombard. Once, someone even brought a mowing maching.
Guzul: “The man had to attend a birthday party, but he had no money. He left behind a lawn-mowing machine but later failed to pick it. We had to put it on sale”.
The Interfax news agency reported earlier that every lombard in Minsk is visited by 30-100 people daily. Lombard staffers say that their customers these days are not alcoholics or unemployed persons but businessmen. Most often, they deposit their cars in order to purchase some merchandise and sell it.
The longer the deposit term is, the lesser the interest rate is.
Lombards often complain about a difficult financial condition, because the state does not rush to pay for the submitted gold:
Lombard LBK: “People deposit gold. When clients do not buy it out back, lombards submit the gold to the state. But the state does not pay on time, because it has no money...”.
Before the state would pay the money within two weeks. Currently, it takes at least one month. Therefore, lombards have to be flexible and accept even $2-worth things as deposits.
Photo by voronezh.ru
Minsker have found lombards as an alternative to banks. Reluctant to gather a necessary paperwork in order to get a loan, they deposit various things. In order to get a loan in lombards, it is sufficient to have a passport and be older than 18 years.
The Minsk-based Guzul told the European Radio for Belarus as follows:
“People who are not sure that they will be able to pay back a bank loan, bring us a certain object and we issue a half of the cost".
Various things ranging from a mobile phone to a wahing maching can be deposited in a lombard. Once, someone even brought a mowing maching.
Guzul: “The man had to attend a birthday party, but he had no money. He left behind a lawn-mowing machine but later failed to pick it. We had to put it on sale”.
The Interfax news agency reported earlier that every lombard in Minsk is visited by 30-100 people daily. Lombard staffers say that their customers these days are not alcoholics or unemployed persons but businessmen. Most often, they deposit their cars in order to purchase some merchandise and sell it.
The longer the deposit term is, the lesser the interest rate is.
Lombards often complain about a difficult financial condition, because the state does not rush to pay for the submitted gold:
Lombard LBK: “People deposit gold. When clients do not buy it out back, lombards submit the gold to the state. But the state does not pay on time, because it has no money...”.
Before the state would pay the money within two weeks. Currently, it takes at least one month. Therefore, lombards have to be flexible and accept even $2-worth things as deposits.
Photo by voronezh.ru
