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| (Image Source: Orange Magazine TV/GCash) |
In a pioneering move to help underserved and unserved Filipinos quickly bridge the gap between daily essentials and take the first step towards creditworthiness, leading finance app GCash, through its lending arm Fuse, has unveiled the expansion of its GLoan with an extended feature: the GLoan Sakto. This game-changing fintech innovation is designed to empower Filipinos, especially in the developing and emerging (D&E) sectors, allowing them to afford day-to-day essentials. Designed to help Filipinos thrive every day through responsive and inclusive digital services, GLoan Sakto reflects GCash’s commitment to develop meaningful financial solutions that support the everyday needs and long-term financial well-being of many Filipinos.
Based on the 2021 Financial Inclusion Report of Bangko Sentral ng Pilipinas (BSP), approximately 43% of the Filipino adult population rely on informal sources for borrowing money for daily expenses. This behavior reflects a significant lack of access to formal financial services as only 22% of Filipinos are served by formal credit institutions. The heavy dependence on informal lending for everyday needs such as transportation and school expenses underscores the urgent need for more inclusive financial solutions to improve accessibility and reduce the reliance on potentially strained personal relationships. This is the financial gap that GCash aims to bridge with GLoan Sakto. Filipinos will benefit from GCash’s nano loans by gaining quick and easy access to funds for daily essentials without relying on informal sources or straining personal relationships. This service offers a structured and reliable way to manage small, urgent financial needs, enhancing financial inclusion and convenience.
Loanable amounts for GLoan Sakto are Php100 and Php300, payable within 14 days. No interest is charged on the loan and borrowers only pay a processing fee of Php6.50 and Php19.50, respectively. More than just a loan product, GCash envisions GLoan Sakto as a stepping stone for Filipinos toward lasting financial freedom. It is the first step in helping users build their creditworthiness, eventually graduating them to GCash’s core loan offerings, such as GCredit, GGives, and GLoan, thereby integrating them further into the formal financial system. “GLoan Sakto represents our commitment to empowering ordinary Filipinos with essential financial tools by providing them access to formal credit through this easy entry-level loan product. With this new financial tool, we are not only addressing their immediate needs but are also helping users build a good credit history,” said Fuse Lending President and CEO Tony Isidro. With the launch of GLoan Sakto, Fuse and GCash has marked a transformative leap in the lending landscape in the Philippines. By seamlessly integrating accessible, nano-sized loans into the everyday financial practices of millions, especially the lowest income segments of Filipino society with 89% of users coming from the D&E market segments; 78% of which reside outside the National Capital Region (NCR). GLoan Sakto has not only broadened financial inclusion but also empowered individuals with the tools needed for personal growth and stability. This innovative solution has significantly boosted lending activity, driving economic participation and fostering a more dynamic, resilient financial ecosystem in the country.
For instance, 3 out of 4 first-time borrowers return for additional loans, setting a new standard for financial integrity and customer confidence, especially in lending. Likewise, 9 out of 10 borrowers repay their loans on time, despite having no prior formal credit line, and 15% of unique borrowers have already taken out more than five loans. By enabling Filipinos to easily and conveniently borrow loans using only their mobile phones, GLoan Sakto has not only simplified the borrowing process but has also cultivated a renewed sense of trust among borrowers, demonstrating a commitment to responsible lending and contributing to a more credible and inclusive financial landscape. As GCash continues its mission to foster financial inclusion, GLoan Sakto stands as a significant milestone, particularly in serving the most marginalized sectors of society. It is a powerful tool in GCash’s ongoing effort to strengthen its role in nation-building through financial empowerment.
