MOBILE LENDING platform Cashalo launched an in-app feature granting clients pre-approved digital credit, in line with its push for responsible financial behavior among Filipinos.
In a statement, financial technology (fintech) firm Cashalo introduced a pre-approved digital credit feature on its consumer basket financing product Cashacart, providing a credit limit to clients in order for them to know how much and over what period of time they are required to repay the borrowed funds.
“If consumers understand what they can spend, then it’s less likely that they will overspend. This is where Cashalo thrives: helping consumers make regular purchases ‘considered’ purchases, so it becomes easier for consumers to bridge the gap mentally and decide whether they simply ‘want a product’ or ‘need a product and are confident purchasing it,” Hamilton Angluben, Cashalo general manager, was quoted as saying in the statement.
Through the pre-approved credit feature, clients can plan their purchases carefully and stick within budget. Clients of Cashalo can apply for the pre-approved digital credit within the mobile application. The pre-approved digital credit can be approved within a day and ranges from P2,250 to P19,999, with interest rates of 0-4%.
Cashalo is a joint venture between Hong Kong-based financial technology firm Oriente and Gokongwei-controlled JG Summit Holdings, Inc. It lends money between P1,500 and P10,000 through its mobile platform. Application is done online, requiring clients to submit documents and IDs digitally.
In a previous interview, Mr. Angluben said the financing company aims to have a million clients by the first half of the year as it eyes to serve unbanked and underserved Filipinos through technology.
In December, Cashalo became a wholly-owned subsidiary of Oriente after it increased its stake in the fintech firm to 100% from 50%. However, JG Summit continues to be “an important strategic partner and investor” of Oriente. — KANV