Financial super app GCash assumes more functions similar to a bank as it now will offer loans to its subscribers.
Through its unit Fuse Lending Inc., it is hopeful of disbursing hundreds of millions of pesos in loans to Filipinos in financial need, a move that the company believes will help digital and financial inclusion nationwide.
With a processing fee as low as P6.50, GCash users may borrow amounts as small as P100 up to P1,000 at zero interest, which could be paid either after 14 or 30 days.
“We are confident that with the advantage we have in terms of GScore, plus the products that we have and more to come in the future, we’ll be able to serve more of our kababayans,” Fuse CEO Tony Isidro said in an interview with reporters on Wednesday night.
Multiple digit growth seen
“Easily, (we can book a) double to even triple-digit growth. Our business has grown 3x already compared to last year. We’re quite confident that we will be able to sustain the momentum towards the end of 2023,” he added.
Since 2016, Fuse has disbursed P100 billion in loans and has helped over three million Filipinos achieve their dreams.
A GCash study found that nine out of 10 Filipinos have to borrow money to make ends meet.
However, the rigorous loan application process set by formal institutions and banks has pushed more than half of those in need to resort to borrowing from informal lenders with high-interest rates and sometimes abusive collection practices.
With the inclusion of a nano-loan offer called GSakto in its extensive lineup of lending products, GCash and Fuse hope to expand its vision of making financial services more accessible to Filipinos, including the unbanked.
GCash Sakto Loans is an extension of GLoan, GCash’s instant cash loan, and GGives, its light and flexible buy now pay later loan.
With no additional minimum requirements needed, GCash Sakto Loans serves as an entry-level loan for those who are not yet eligible to borrow larger amounts on the app but require small amounts to supplement their budget.