GCash’s lending arm, Fuse Lending Inc., is optimistic about posting double-digit growth this year with the expansion of its lending portfolio.
“We’re very confident that we will continue to sustain significant growth, it’s easily double-digit. Our business has grown three times versus last year, and we’re quite confident we’re going to sustain momentum, going towards the end of 2023,” Tony Isidro, Fuse chief executive officer (CEO), said in an interview on the sidelines of the GCash x Fuse event on Wednesday
From 2016 until July this year, Fuse has disbursed P100 billion in loans to over 3 million Filipinos.
Isidro said he expects disbursements to continue increasing this year with the launch of a nano-loan service, GCash Sakto Loans.
This enables GCash users to borrow small amounts as “pambale” as it seeks to provide more Filipinos with access to fair, easy and inclusive loan options without the need for bureaucratic paperwork.
A GCash study found that nine out of 10 Filipinos have to borrow money to make ends meet. But with the rigorous loan application process set by formal institutions and banks, more than half resort to borrowing from informal lenders with high-interest rates and sometimes abusive collection practices.
“Sakto Loans serves as an expansion of our suite of lending options GLoan, GCredit, and GGives, which has provided users with a convenient way to borrow money with just a few taps on their phone. Through access to fair lending, we are able to provide more Filipinos access to borrowing means that truly prioritizes their needs,” said Isidro.
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 are in need of small amounts to supplement their budget.
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.
“Sakto Loans offer an added comprehensiveness to our already extensive product lineup. In instances where we only need a small amount to get by, this nano-loan feature will save us the time and energy of having to borrow from family and friends or even informal lenders,” Isidro added.
