MANILA, PHILIPPINES — The pandemic brought the country to a near-standstill when, according to the Philippine Statistics Authority, around 7.3 million Filipinos lost their jobs and were forced to find new means of living. However, with openness to using digital innovations and the perseverance to bounce back, some saw it as a turning point and a start of new beginnings.
Such is the case of Cocoy Rubio, who only had PHP 700 when he started his mobile bike cafe business, fresh out of being laid off as a bartender for six years. Taking a leap of faith, Cocoy used GCash to easily purchase supplies and enable customer payments, eventually building what is now known as The Bike Coffee in Cagayan de Oro. Cocoy’s journey of determination and grit is only one of the stories of the 70 million Filipinos who use GCash, retold through the #GCashStories digital series.
Just like Rubio, many Filipinos aspire to start their own business, but are held back by the lack of starting capital. To fund their enterprise or expand their existing ventures, Filipino business owners consider seeking loans from formal lending institutions, such as traditional banks. However, a report from the Bangko Sentral ng Pilipinas (BSP) shows only 56% of Filipinos are banked or own formal bank accounts, making access to resources greatly limited.
The BSP also reports that 65% of adult Filipino borrowers perceive loan application from banks as difficult. Most lack the necessary documentary requirements, do not have enough IDs, do not meet the minimum salary or income, and do not have collateral to support their application.
GCash introduces easier way of borrowing cash with GLoan
As the nation strives to bounce back, GCash inspires Filipinos to take a step towards funding their future by providing a more accessible and convenient way of borrowing money without judgment. To provide more Filipinos with easy access to extra funds, GCash offers GLoan, its cash loan product. This offers a credible and easier alternative to traditional banks and other formal lending agencies without sacrificing their safety.
While typical traditional bank approvals take multiple days or months, GLoan offers instant approval for eligible users with no additional requirements needed. As GLoan eligibility is predetermined, there is no need for users to disclose their financial situation through income documents and trade references. Loan applications can be accomplished within the app, minimizing the need for face-to-face transactions, filling out application forms or submitting physical documents.
Eligible GCash users who wish to avail GLoan can choose their loan amount from PHP 1,000 to a maximum of PHP 125,000, and receive it straight to their GCash wallet. With competitive interest rates as low as 1.59% per month for five months to two years, GLoan provides the same credible and secure experience of loaning from banks.
To be eligible for GLoan, users must have a fully verified GCash profile and must maintain a qualified GScore, which is the app’s trust rating reflecting their GCash activity. Increasing or maintaining one’s GScore can be done by maintaining an active GCash wallet balance, regularly using different GCash services and paying dues early or on time.
