GCash loan disbursements hit P2.5 billion in 10 months

Financial technology platform GCash loaned out P2.5 billion since the launch of its GLoan service which allows users to borrow up to P50,000, the firm reported Monday.

According to GCash President and Chief Executive Officer Martha Sazon, the firm was looking to boost public access to financing, citing the rates offered by informal lenders.

“We want to make lending more accessible to consumers to prevent them from becoming victims of informal lenders who usually charge predatory rates,” she said in an emailed statement.

GLoan offers loans from P1,000 to P50,000 payable in five, nine, or 12 months, with the in-house trust platform GScore used to evaluate a borrower’s ability to pay.

The GCash website indicates that the loan offering has a standard interest rate of 2.89%.

Its parent company Globe Fintech Innovations Inc. (Mynt) secured over $300 million in fresh funding last year, increasing the company’s valuation to over $2 billion.

“We have not fully deployed the capital raised, and we plan to do so by further investing in our lending initiatives, our wealth management aspirations, and the digital ecosystem in rural areas in the country,” said Sazon.

The company said it had also disbursed P345 million under its “buy now, pay later” offering from December 2021 to May 2022. — DVM, GMA News