Narva, one of the largest cities in Ida-Viru County, has become a hub for steady growth in the number of pawnbroker clients in recent years. In 2024, the city saw a significant rise in the number of pledged items, a phenomenon attributed to the worsening economic situation in the region.

By December of the past year, the volume of items being pledged by Estonian residents reached record levels. Compared to 2023, the increase was 20%. This trend was particularly evident in Narva, where the number of clients rose so dramatically that pawnbroker employees admit they are running out of space to store the items.

"December is always a busy month, but this past year, the volume of pledged items increased by around 20%. In some branches, we literally have no more room to store the goods," said Margarita Bakina, a consultant at the Luutar pawnbroker network, during a broadcast of the Kofe+ program.

While an increasing number of clients is being observed nationwide, the situation in Narva stands out. Here, pawnbrokers have seemingly become a new type of financial institution, where people come not only for quick cash but also for a sense of stability.

"Cities like Pärnu, Tartu, and Kohtla-Järve have always seen high activity, but now the demand has increased even more. Specifically in Narva, the number of clients has grown significantly, which may be linked to the general rise in prices, including heating costs," Bakina noted.

Bills and Gold Chains

The sharp rise in heating costs in Narva is considered one of the potential causes of the increased number of pawnbroker clients. With incomes traditionally lower than the Estonian average, residents of the city are forced to find ways to cover the gap between bills and wages. Pawnbrokers appear to be an increasingly common solution.

The maximum amount a client can receive is 45% of the market value of the item. The payout depends on the condition of the item, its accessories, and whether there is a receipt or guarantee. The pledge period ranges from 5 to 35 days, but if a client doesn’t redeem their item on time, they are granted "seven extra days to reconsider."

"You never know, they might realize and come back," Bakina clarified.

Rolex Watches and Retirees

Among the clients of Narva’s pawnbrokers are those who just need a few extra euros, as well as those bringing in gold or high-end watches. For example, in December, a Rolex watch was pledged at one of Narva’s pawnbrokers for €4,000.

"Our clients come from all walks of life. Some need a small amount, others bring in high-value items. We also have retirees. For them, we offer special conditions with a lower interest rate," Bakina added.

However, the majority of clients try to redeem their items. In 75% of cases, people return to reclaim their possessions, while in the remaining 25%, the items are sold.

Meanwhile, the cold weather in Narva continues to intensify, as does the flow of clients heading to the pawnbroker.