MANILA — Popular e-wallet brand GCash has introduced a small loan product aimed at protecting a population prone to borrowing through shady means.
Neil Trinidad, chief marketing officer of GCash, told reporters on Wednesday that the company was testing the Sakto Loan product, which allows users to borrow between 100 and 1,000 pesos. It should be fully deployed before the end of the year.
“All of our loans are accessible and fair,” Trinidad said, pointing out that “if you borrow from informal lenders, it’s often predatory. The interest rates are very very high.
For the Sakto Loan product, Fuse Lending Chairman and CEO Tony Isidro said no interest charges would be levied. However, a processing fee of 7 percent will have to be paid by the customer. The loan is payable fortnightly or at the usual time of disbursement of salaries.
Fuse Lending is the lending arm of GCash.
Trinidad said it aims to meet the needs of the underserved market so that it does not have to resort to informal loans. Isidro said borrowers do not need to submit collateral. No additional documents are also needed as the loan application is assessed based on the behavior of the user on the GCash app.
Since Fuse Lending was established in 2016, Trinidad said it has provided loans worth 100 billion pesos to more than three million borrowers.
Isidro hopes GCash will be able to provide more funding before the end of the year, especially during the holiday season when spending usually picks up.
Available in 13 countries, GCash offers a suite of financial products including savings, loans, investments and insurance.
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