FILIPINOS are looking for affordable and fair lending rates, mobile wallet app operator GCash said on Monday after disbursing more than 2.5 billion pesos in cash loans in the space of 10 months.
“We want to make loans more accessible to consumers so they don’t fall victim to informal lenders who typically charge predatory rates. We want Filipinos, especially the unbanked, to have access to funds whenever they need it,” GCash President and CEO Martha M. Sazon said in a statement.
GCash, operated by Globe Fintech Innovations, Inc. (Mynt), offers a loan program called GLoan, which allows pre-qualified users to take out loans from P1,000 to P50,000. The loan is repayable in five, nine or 12 months, with no further requirements.
GLoan uses the internal GScore trust platform to verify a borrower’s ability to pay.
Meanwhile, GCash’s “buy now, pay later” option, GGives, paid out 345 million pesos from December 2021 to May 2022 from 85,000 merchants. The option allows consumers to make immediate purchases without cash or credit card.
The mobile wallet said it has also partially deployed the $300 million in funding it secured late last year to expand its lending operations, improve the platform and further grow the business. .
“We have not fully deployed the capital raised, and we plan to do so by further investing in our lending initiatives, wealth management aspirations and digital ecosystem in rural areas of the country,” said Mrs Sabon.
An estimated 60 Filipinos are GCash users, representing approximately 83% of the adult population of the Philippines. — Luisa Maria Jacinta C. Jocson