Mobile platform for short-term financing to help consumers avoid 'loan sharks'
MANILA - Consumers who don't qualify for regular loan products can now avail of short-term loans using Security Bank's new mobile platform facility which aims to reduce borrowing from informal lenders, the bank said on Monday.
The Salary Advance (SALAD) facility is a fully-automated mobile platform where applications can be approved in as fast as 10 minutes and can be re-availed through SMS, the bank said in a statement.
"Our loan facility will provide formal credit access to those who fall prey to loan sharks, causing more burden to their financial condition,” Maki Tingson, executive vice president & retail banking segment head of Security Bank Corp., said.
She said some borrowers disregard the repercussions and high interest rates especially during emergencies.
Money from successful applications will be transferred to the payroll account of the borrower and can be withdrawn from an ATM.
Regular employees of accredited companies are eligible to avail of short-term loans. They should also have an active payroll account of at least 6 months with at least P5,000 average salary net credits.
Customers can opt to pay in installment for a maximum of 3 months through Automatic Debit Arrangement (ADA) from their payroll account.
Other facilities, like Tala, operated by a US-based financial firm, also offers micro-financing to the unbanked using its mobile platform.