GCash lending service disburses P5B in loans to date

Mobile wallet GCash said Tuesday it has strengthened its strategic partnership with digital banking service CIMB Bank Philippines to further widen the reach of its digital credit facility for its users.

In a statement, GCash said it has disbursed roughly P5 billion in loans to around 550,000 users since it introduced GCredit in March 2018.

GCash, together with CIMB Bank Philippines, said it aims to help more Filipinos gain access to critical financial tools and services like credit, which has proven to be critical during the pandemic. 

With the partnership, CIMB Bank Philippines will provide full backup funding support for the GCredit product line.

“We are happy to announce that with the full support of CIMB Bank Philippines, we can scale up GCredit to reach more customers who are in need of micro loans.  This helps accelerate our vision of providing finance for all, which we at GCash have been pushing for the last decade,” GCash president and chief executive officer Martha Sazon said.

GCash noted that GCredit gained popularity during the pandemic, with users extending their budgets for their groceries and payment for their utility bills.

A GCash user may have access to up to P10,000 in credit line with a low daily interest rate computed as current interest rate divided by the number of days on credit.

“Any GCash user with an eligible GScore, the first digital credit rating score in the country, is entitled to use GCredit,” it said.

The higher the GScore, the higher the credit limit that a user can tap, it added.

While it functions like a credit card, GCash said GCredit does not require users to submit extensive documentary requirements or queue up to apply for a revolving credit facility.

“We at CIMB Bank Philippines are happy to strengthen our strategic alliance with GCash. We believe that through our partnership, we will be able to further reach more Filipinos to help them save, gain access to credit, and manage their finances with us” CIMB Bank Philippines chief executive officer Vijay Manoharan said.

Globe Fintech Innovations Inc. (Mynt), which operates GCash, is part of the portfolio companies of 917Ventures, the largest corporate incubator in the Philippines wholly-owned by Globe Telecom Inc.

CIMB Bank Philippines is part of the CIMB Group, ASEAN’s leading universal bank and is present in over 16 global markets.—AOL, GMA News