GCash expands with Nano Loans for daily essentials

GCash, the Philippines’ leading mobile wallet, has launched GLoan Sakto, a new “nano-loan” feature designed to help Filipinos access small, immediate loans for day-to-day essentials.

The new offering, rolled out through GCash’s lending arm, Fuse, allows users to borrow as little as P100 or P300, payable within 14 days.

The loans carry no interest, with only a minimal processing fee of P6.5 and P19.5, respectively.

“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 Tony Isidro, president and CEO of Fuse Lending.

GCash aims to address the significant gap in financial inclusion in the Philippines, where a large portion of the population still relies on informal sources for borrowing.

According to the Bangko Sentral ng Pilipinas’ 2021 Financial Inclusion Report, 43% of Filipino adults borrow from informal sources for daily expenses, while only 22% have access to formal credit institutions. The reliance on informal lending often creates financial strain and stresses personal relationships.

GLoan Sakto offers a more structured, accessible option. Users can quickly apply for these nano-loans directly through their mobile phones, avoiding the need for informal loans.

GCash also views the product as a stepping stone toward building creditworthiness. Borrowers who responsibly manage their GLoan Sakto can eventually graduate to GCash’s more robust loan products, such as GCredit and GGives, integrating them further into the formal financial system.

The introduction of these nano-loans is a transformative move for the Philippine lending landscape, particularly benefiting underserved sectors.

Approximately 89% of GLoan Sakto users come from the D and E market segments, with 78% residing outside Metro Manila.

GCash reports that 3 out of 4 first-time borrowers return for additional loans, and 9 out of 10 repay on time, even without a prior formal credit line.

“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,” Isidro added.

“This is a crucial step in responsible lending, contributing to a more inclusive financial landscape.”

As GCash continues its mission to foster financial inclusion, GLoan Sakto stands as a key initiative in serving marginalized sectors and enhancing financial empowerment across the country.

For more information on how to get started, visit www.gcash.com.