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Lower rates, higher loans… Faced with inflation, Crédit municipal de Paris is strengthening its offer

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Lower rates, higher loans… Faced with inflation, Crédit municipal de Paris is strengthening its offer

In order to help its customers in a context of loss of purchasing power, Crédit municipal de Paris , a solidarity financial aid establishment in the capital, is changing the terms and conditions for granting its loans on Monday. Pawn loans will now be larger and interest rates lower. The establishment has so far offered loans equivalent to an average of 54% of the value of the property deposited; this share will now be 60%. The establishment also undertakes to significantly lower the interest rates on its loans, by 15% over one year.

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In addition, the Crédit municipal de Paris indicates in its press release to expand the tranche of loans that can benefit from an interest rate of 2%, which is the lowest rate offered by the establishment. Concretely, it was previously granted to loans ranging from 30 to 300 euros. From this Monday, it will apply up to 500 euros of loan. “ This measure was designed primarily for vulnerable audiences, in order to simplify their access to cash ,” indicates the financial institution. To further facilitate access to the loan, it is now possible to go there in the morning, without an appointment.

Opened in 1637, the Crédit municipal de Paris is a public and solidarity-based establishment offering a low-rate microcredit and pawnbroking service. Anyone can come and deposit valuables – jewelry, clothing, furniture, etc. – and obtain a loan in return, the amount of which varies according to the value of the object deposited. If the loan contracted is repaid on time, it is possible to recover the object. Otherwise, it is sold by the establishment, which reimburses itself in this way. The establishment grants loans ranging from 30 euros to 5 million euros to people in immediate need of cash.

Benefits that must be sustained
The advantages granted in the current period, marked by an increase in inflation, should also be maintained over time. The Crédit municipal de Paris does not plan, for example, to raise its rates in the event of an increase in purchasing power. “ It is something that has been carefully considered, and not only in the context of the current crisis ”, advances Jeanne Mougel, director of communication for the establishment. “ We are a welfare institution. We try every time we can to lower our rates. Since it is our vocation, we do not deprive ourselves of it, ”she says.

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To explain its ability to offer an offer that goes against the current trend, Crédit municipal de Paris evokes “ sound management ” of its finances, offering it “ the freedom to take strong social assistance measures ”. The excellent health of the auction market in France in 2021, highlighted on March 30 in a press release from the Sales Council , has also enabled Crédit municipal de Paris to build robust health. The establishment indeed has an auction activity which did very well last year, in a context of digitization of auctions during the pandemic. “ We set sales records in 2021, especially in watch sales“, Details Jeanne Mougel, which today allows Crédit municipal to reaffirm its desire to “ support Parisians and Ile- de-France residents ”.

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