MANILA - GCash users can now avail of loans as low as P100 to pay for minor and urgent purchases such as groceries, the company said in a press briefing on Wednesday.

GCash and its partner Fuse Lending said they are offering GLoan Sakto which lets users borrow P100 up to P500. This will help reduce the dependence of those in the lower income brackets o informal lenders and loan sharks, they said.

"For sakto loans, eto yung mga pantawid talaga sa mga araw-araw na pangangailangan. As low as P100 makaka-utang o makakabale ka," said Fuse Lending CEO Tony Isidro.

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While the Sakto loans will have a zero interest rate, users will still need to pay a 7 percent processing fee.

GCash said it will roll out the service in phases, and that those eligible to access GLoan Sakto Loan will receive a message from the e-wallet operator.

It will soon be available to all users, it said.

Meanwhile, GCash said it has disbursed P100 billion worth of loans through its various credit facilities since it began offering the service a few years ago. Over 3 million users have borrowed money through the app, the Ayala-led fintech said.

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