LOCAL consumer financing company Home Credit expects loans to pick up in the remaining months of the year as more and more Filipinos adjust to life’s new normal from the global health crisis.
In a statement, Home Credit noted that malls’ foot traffic are starting to increase as lockdown measures and local cases start to “stabilize.” This, the company said, indicates increased spending and a bounce back of loans within the year.
“We definitely see more people in malls, and more people making purchases and loans for their families’ needs,” said David Minol, chief executive officer of Home Credit. “It is another encouraging sign that people are gradually recovering from what was a very challenging year for us all.”
Just last month, the Bangko Sentral ng Pilipinas (BSP) reported that bank lending continued to contract in May, albeit at a slower pace from April contraction. In particular, bank lending declined by 4 percent in May. This is slower than the 5 percent contraction recorded in the previous month.
In particular, consumer loans fell by 9.2 percent in May following a 10.2-percent decrease in April as motor vehicle loans and salary-based consumption loans continued to decline.
According to Minol, at the mid-point of 2021 Home Credit has so far seen a rise in loan volume and served customers compared to 2020.
Minol noted that Home Credit’s best-selling commodity for financing in 2021 remains to be smartphones, with TVs, refrigerators, laptops and sporting equipment completing the top five list.
Air conditioners were also an in-demand commodity especially during summer, as Home Credit saw a 125 percent increase in sales of cooling products.
“The demand was there even during the peak of lockdowns, but with malls closed and people staying safely at home, not to mention the economic challenges of the pandemic, our expectations were tempered as we prioritized the safety of our customers and employees,” Minol said.
“But with the majority of our partner stores across the country up and running once again, we are excited to welcome back our customers and give them the best possible experience,” he added.