Public perception of the Spanish Montes de Piedad Association, known as Presea, has shifted noticeably over the past decade. Once viewed primarily as a last-resort option, these social credit institutions are increasingly recognized as a viable alternative to traditional lenders for a broad range of people, from vulnerable individuals to self-employed professionals. Their appeal lies in clear terms, fast access to funds, and the opportunity to borrow without sacrificing long-term financial stability. As a result, more entrepreneurs without substantial assets are turning to this avenue, a trend that continues to rise.
During Presea’s extraordinary general meeting held recently in Las Palmas de Gran Canaria, the association’s president, Ramón Alba, reported that activity has returned to a steady pace following a post-quarantine surge. He noted that the network now handles a portfolio exceeding 100,000 items and manages assets totalling around 150 million. The stated reasons for choosing social credit institutions include the desire to satisfy immediate needs, resolve financial hiccups, and support small and medium-sized enterprises or self-employed workers seeking working capital.
In the prior year, the sector issued roughly 220,000 loans across the country, with an average loan size of about 690 to 700 euros. The approach hinges on the debtor providing an item that proves ownership and can serve as collateral, typically family jewelry such as rings, bracelets, or necklaces. High-value or heritage pieces are also commonly accepted. Expert appraisers determine the loan amount, and borrowers usually receive a loan that is about 70 percent higher than the appraised value. If the borrower agrees, the contract is signed, and the funds are available the same day.
Alba emphasized that the product line is growing at a measured pace, approximately 5 to 10 percent each year, reinforcing the view of Presea as an additional credit channel rather than a last resort. He cited a case of a young individual who pledged a Rolex gold watch to start a business; the venture expanded to a point where a Chinese company acquired it. When the owner later returned to retrieve the watch, he expressed gratitude for the financial support that helped launch the enterprise.
CAN BE EXTENDED UP TO 12 MONTHS
What is the typical loan duration? Usually twelve months, with the possibility of an extension if repayment is not complete by the end of the term. Upon repayment of both principal and interest, the borrower’s jewelry is returned promptly. Extremely, only about three percent of clients fail to reclaim their items, which occasionally leads to an online public auction.
The system ensures that debt is settled by the reward amount and any additional benefits are allotted to the customer. What sets these operations apart from standard pawnshops is their designation as “social credit” lenders. The overarching aim is to safeguard the borrower’s capital so they can reuse the Montes de Piedad instrument whenever opportunity arises.
These organizations are framed as a bulwark against usury, a point underscored by Fernando Fernández, the director general of the La Caja de Canarias Foundation, which participates in the association along with seven other bodies. Fernández highlighted that, as non-profit entities, they deliver benefits to society, including employment programs, financial education, local development, culture and heritage initiatives, and research. By offering access to finance under fair conditions and advising vulnerable populations on fraud prevention, Montes de Piedad seeks to support the broader economic well‑being of all social strata.
In this context, the emphasis remains on empowering borrowers to maintain capital and re-enter the credit cycle when opportunities arise, rather than trapping them in cycles of debt. The model positions Presea as a steady, community-focused network that couples asset-based lending with social value, reinforcing trust among borrowers while expanding access to responsible credit.
[perspective-note] This synthesis reframes the organization’s mission and activities with attribution to institutional reports and public statements, without citing external links in this article. [Attribution: Presea materials and statements from the Las Palmas meeting; La Caja de Canarias Foundation report].