Abstract

COTLER, Pablo  and  CARRILLO, Rodrigo. The Mexican Secure Loan Market: Who uses it, how much it costs, and how much competition there is. Rev. mex. econ. finanz [online]. 2018, vol.13, n.2, pp.247-272. ISSN 2448-6795.  https://doi.org/10.21919/remef.v13i2.276.

The objective of this work is to describe the Mexican secure loan market. Based on a survey of the eighteen most important institutions in the country and using data from official sources, the relative cost is calculated and probabilistic estimations are made for the users. Furthermore, the location pattern of the establishments that offer these loans and the existing level of competition is analyzed. The results suggest that it is erroneous to think that the use of this service reflects financial exclusion. Additionally, it is observed that the interest rates of secure loans are close to those of the relevant bank credit. Based on a radial analysis, it is shown that there is a lot of competition in this market, but there is room for expansion. One limitation of the work is that the database is a cross-section and its originality lies in the construction of a database and in being the first characterization of this market. The relevance of these loans and showing that there is a misperception are some of the main conclusions of this work.

Keywords : C25; D14; G10; G21; Pawn; Mexico.