Nacional Monte de Piedad facts for kids
![]() |
|
Private | |
Industry | Pawnshop |
Founded | 1774 |
Headquarters | Mexico City |
The Nacional Monte de Piedad is a special kind of non-profit organization. It's like a pawnshop that helps people by offering loans. Its main office is in Mexico City, near the big central plaza called the Zócalo.
This institution was started between 1774 and 1777 by Don Pedro Romero de Terreros, who was also known as the Count of Regla. He wanted to help poor people get loans without high interest rates. In 1927, the Mexican government officially recognized it as a national charity. Since the early 2000s, it has grown a lot. Now, it has over 200 branches all over Mexico and plans to open even more.
Contents
Main office
The main building is on the northwest corner of the Zocalo. It sits where Monte de Piedad and 5 de Mayo Streets meet. This spot was once part of a huge property owned by Hernán Cortés (1485–1547). Even before Cortés, the "Old Houses" of Moctezuma II's father, Axayacatl, were in this area.
The original building was so large it was compared to a city or a Cretan labyrinth. It had two floors and smaller buildings that Cortés rented out. It even housed the Royal Tribunal and was home to some early viceroys of New Spain. In 1615, the property was divided and sold.
The outside walls of the current building are made of tezontle stone and were built in 1775. Above the main door, you can see the coat of arms of the Count of Regla. Inside the main doorway, there's Mexico's coat of arms and a statue of Don Pedro Romero de Terreros. The inside of the building has changed a lot over time. A third floor was added in 1948. What used to be Cortés's accounting room became a chapel until 1926. Now, it's a museum with old paintings, decorations, and original statues.
In 1984, the building was updated. Its outside walls were cleaned, and the wood and iron parts were fixed. Floors and columns were polished. Protections were added to the windows where appraisers work, and the art room was made bigger.
On April 17, 2004, a fire started in the building due to an electrical problem. It began in the cashiers' and appraisers' rooms. Luckily, none of the pawned items were damaged.
The institution's story
How it started
The idea of "Monte di Pietà" began in Italy in 1450 with the Franciscan Order. Its goal was to help people financially by giving loans without interest. Instead of interest, people were asked to give donations to the Church. This idea spread across Europe. The first Monte de Piedad in Spain was in Madrid. From there, the idea came to New Spain (what is now Mexico).
Pedro Romero de Terreros (1710–1781) brought the idea to Mexico. He was born in Spain and came to Mexico in 1730. He started many businesses, including the Real del Monte silver mine. Between 1774 and 1777, he founded the "Sacro y Real Monte Pío de Animas." King Charles III approved it. Terreros gave 300,000 pesos of gold to start the project. Just like other Monte de Piedad groups, his organization did not charge interest on loans. It also encouraged borrowers to donate to Church groups and attend church.
The Monte de Piedad began its work in 1775. It was first located in the College of Saints Peter and Paul, which is where its main office is today. During the Mexican War of Independence, the building had to be emptied in 1821. The organization moved to different places for a while. Later, in 1836, it bought back its original home from the Duke of Monteleone.
After Mexico became independent, the government supported the institution, and it got its current name. In the early 1800s, the Monte de Piedad faced money problems due to poor management and political issues. But by the end of that century, it was doing so well that it even printed its own money! In 1881, it opened its first branches in other cities like San Luis Potosí and Oaxaca, though these closed later. In 1927, a president's order declared Monte de Piedad a "private charity."
What it does today
Since it started, Monte de Piedad has had two main goals. The first and most important is to give loans to families who need money urgently. They try to offer the best conditions possible, without trying to make a profit. Their main way of lending is through microloans, where people pawn (or temporarily give) an item as security.
At first, they didn't charge interest, but they lost a lot of money. So, in 1782, they started charging a small, fixed interest rate. Because they are a charity, they will accept items worth as little as 30 pesos. However, the average loan is about 500 pesos. Most items pawned are jewelry and watches. But they also accept cars, home appliances, and even sheets and linens. Over time, they have added other services like banking (since 1878) and home equity loans (since 1997).
Their second goal is to use any money they earn to help others. In recent years, the institution has given money to over 1,500 charities. They donate between 400 and 450 million Mexican pesos each year. These charities help many different groups, like children with burns, the Mexican Red Cross, and organizations that help children with autism or cancer. They also help victims of domestic violence.
Besides charities, Monte de Piedad also supports education through scholarships. They have been a main supporter of the "Beca Cholula" fund. This scholarship helps excellent students from poor communities in Puebla state go to a private university called UDLA.
How it works now and its growth
The institution has become very well-known in Mexico, especially since the year 2000. People often call it "Tia (Aunt) Piedad."
From 1988 to 2000, Monte de Piedad had about 33 to 35 branches across Mexico. By January 2008, that number had grown to 152. They plan to open a branch in every Mexican city. The biggest offices are in Mexico City, Monterrey, Guadalajara, and Mérida. The foundation expects to give loans to many families each year. This means they handle millions of pawned items every year.
People take out loans for many reasons. Many use the money to fix up their homes, send their children to college, or start a business. More people are also getting loans to pay off their credit cards. However, many loans are for expenses related to going back to school, vacations (especially Holy Week), and January, after the Christmas holidays.
The "back to school" season is in late August and early September. This is the third busiest time for Monte de Piedad. Costs for school often include supplies, uniforms, shoes, backpacks, and textbooks.
The busiest time for Monte de Piedad is in January, after the holidays. The second busiest time is around the Holy Week vacations. During every major holiday, people line up at Monte de Piedad offices to get money for their celebrations. A spokesman for Monte de Piedad said that pawning items has always been a part of Mexico's financial culture, especially for people with limited money.
Monte de Piedad charges a low interest rate of four percent on pawned items. People have seventeen months to get their items back. About 96% of items are reclaimed. Other for-profit pawn shops often charge much higher interest rates. Even with a high recovery rate, items that are not claimed are sold at public auction. These auctions happen every two weeks at the main office in Mexico City.
Reputation
In 1945, a special department was created to train appraisers. These are the experts who decide how much an item is worth. They specialize in things like jewelry, furniture, or art.
To keep its good financial reputation, Monte de Piedad lets outside experts like Standard & Poor's check its financial records. They usually get high ratings. The institution has also received a special certification from AENOR. They also work with legal authorities to stop people from pawning stolen items.
However, the institution has faced some issues with its employees. In 2007, retired and active employees protested. They said the institution told them they were enrolled in the IMSS (a public health insurance program), but they weren't. The employees said they didn't realize this for a long time because the company provided private health insurance. A court later ruled against Monte de Piedad in a case brought by about 350 employees.
See also
In Spanish: Nacional Monte de Piedad para niños