The Provident Loan Society was created in the financial panic of 1893 when there was a minimum of social and government agencies to help the needy. Pawnbrokers, with a long history in Europe, flourished at this time in New York City, however, with unsavory reputations. Pawnbrokers required borrowers to pay extreme rates of interest on short term loans.
A group of the City's business leaders and financiers saw an urgent need to create an alternative to unscrupulous pawnbrokers. These dignitaries were determined to establish a not-for-profit organization dedicated to providing low-interest short term loans to individuals upon pledge of personal property. The founders included such notables as:
Solomon Loeb,
Alfred B. Mason,
J.P. Morgan,
Jacob H. Schiff,
Gustav H. Schwab, and
Cornelius Vanderbilt.
These men gave their time, talent and money to create the foundation for a very unique idea - offering short term collateral loans for people in need. A special act of the New York State Legislature was passed in 1894 incorporating The Provident Loan Society of New York and the doors of its first office soon opened.
Today, The Provident Loan Society serves approximately 100,000 people annually and continues the mission of its founders. Provident provides gold and jewelry loans up to $100,000 for a term of 6 months. New York State pawnbrokers require that loans be paid back in four months. The interest rate for short term loans from Provident Loan is substantially lower than the approved rate for New York State pawnbrokers. Provident Loan even provides secured personal loans by mail to anywhere in the United States.
