ONLINE lending platform provider Tala has launched a new digital credit option meant to address the concerns of many Filipinos on how to handle well their financial obligations.
The Philippines, wherein many have little or no experience at all with formal credit due to lack of access to financial institutions, has been considered the “most stressed” nation in Asia Pacific when it comes to household finance management.
This opened an opportunity for the global technology company five years ago to bring its financial services within their reach, especially the unbanked and underserved sectors in the country.
Since the country is now its biggest market in Asia, the firm decided to introduce the New Tala Loan domestically, so Filipinos could be the first to avail of it, announced Tala Country Manager Donald Evangelista.
Showing that debt management need not be difficult, it’s customizable as it allows borrowers to only pay the full loan amount they receive for the days they use — as low as ₱5 daily interest rate for a ₱1,000 loan. Thus, they can save more unlike in the past, wherein the lowest fee for such credit amount was ₱100 for a minimum period of 20 days.
With the new offering, customers can choose to repay their loan between one to 61 days. Its transparent daily fee, without hidden or surprise charges, enables them to compute the amount they need to repay and prevents them from worrying about “bill shock.” So they can opt to repay earlier or later than their original repayment date, depending on their income or capacity to settle their obligations.
In this pay-per-use option, flexibility and money-saving gains are even greater for higher loan amounts. For instance, a credit of P15,000 will only incur a repayment fee of P75 if settled a day after, contrary when waiting for the earliest schedule of 20 days with a repayment fee of P1,500.
“The New Tala Loan is an evolution of our microloan services made to be even more accessible and flexible for a wider variety of lifestyles,” Evangelista said. “We have made loans more accessible, as customers can now attain peace of mind when doing what they want, making them more productive and happier with their lives.”
Because borrowers now have more opportunities to navigate their financial journey, the top executive noted that Tala realizes its global mission of giving financial access and loan growth for credit-invisible consumers here.
“We started in the Philippines in 2017. We’re very happy we made this choice and we hope more Filipinos can achieve their dreams with Tala. We’re here for the long haul,” he said.
The New Tala Loan leverages the multinational’s strengths in proprietary technologies, machine algorithms, and the ability to understand customer needs. To date, the company has given more than 41 million loans worth over $3 billion to over seven million people across three different continents.