GCash to allow users to borrow as low as P100
MANILA -Popular e-wallet brand GCash has introduced a small loan product meant to protect a population prone to borrowing through shady means.
GCash chief marketing officer Neil Trinidad told reporters Wednesday the company was testing the Sakto Loan product, which allows users to borrow as low as P100 up to P1,000. It is targeted to be fully rolled out before the end of the year.
“All of our loans are accessible and fair,” Trinidad said, noting that “if you are borrowing from informal lenders, it is often predatory. The interest rates are very very high.”
For the Sakto Loan product, Fuse Lending president and CEO Tony Isidro said that no interest fee would be collected. However, a processing fee of 7 percent will have to be paid by the customer. The loan is payable every fortnight, or when salaries are usually disbursed.
Fuse Lending is the loan arm of GCash.
Trinidad said they were aiming to address the needs of the underserved market so they do not have to resort to informal lending. Isidro said borrowers do not need to present collateral. There is also no need for additional documents because the loan application is evaluated based on the user’s behavior on the GCash app.
Since Fuse Lending was established in 2016, Trinidad said they had disbursed P100 billion worth of loans to more than three million borrowers.
Isidro is hoping that GCash will be able to extend more financing before the year ends, especially during the holiday season when spending usually picks up.
Available in 13 countries, GCash provides a suite of financial products including savings, lending, investments and insurance.