GrabFinance lowers monthly lending rate to 1%
MANILA -The lending arm of ride-hailing giant Grab Holdings Inc. said it has recalibrated its loan program for merchant partners in the Philippines, lowering the interest rate and shortening the disbursement period, as part of efforts to support micro, small and medium enterprises (MSMEs).
Grab Financial Services Philippines Inc. (GrabFinance), said its partner merchants could now avail themselves of a 1-percent monthly interest rate, lower than the previous allowable interest rate of 1.25 percent.
“Currently, (Grab) Quick Cash has the lowest possible interest rate in the financial [arena]—compared [with] banks, credit cards and other financial companies,” a company representative said in a message sent to the Inquirer.
Quick Cash loans are now also disbursed within 24 hours post-approval, better than the previous lead time of seven days, according to the company.
GrabFinance said further that its Quick Cash had also been made available on the ‘Grab Merchant App,’ where partner businesses could set up their store on Grab in as little as three days, offer delivery services and manage payments.
“The in-app application makes it easier for merchant-partners to access Quick Cash as it eliminates the need for documents, form preparation and collation of other requirements. The process was also streamlined to make approvals in real-time,” the company said.
Their loan product can serve as a lifeline for budding entrepreneurs amid the high inflation environment in the Philippines, GrabFinance said, adding that entrepreneurs it had surveyed recently cited inflation as a concern.
The company said that respondents mentioned that inflation was exacerbating the cost of raw materials, supplies and operations, affecting overall business stability and profitability.
Martha Borja, GrabFinance PH president, said they were determined to be the most reliable growth partner for every Filipino entrepreneur.
“We want our merchant-partners to have unfettered access to above-par solutions that not only keep their businesses afloat but also spur stability, scalability and resiliency. By equipping entrepreneurs with essential financial lifelines, we enable them to be more adaptive and bullish as they navigate the postpandemic era,” Borja said.
“Grab merchant-partners who have been on the platform for six months, have good credit standing, and have stellar delivery performance are eligible for a Quick Cash loan,” she said further.