The operator of GCash, Mynt is actually composed of two entities — GCash and Fuse Lending. The GCash company handles the e-wallet and everything under it, and Fuse Lending handles loans. Actually, Fuse Lending has its own loan products. Before turning it over to CIMB, GCredit was also handled by Fuse Lending.
A lot of requests when GCredit was launched was whether users could encash the loan. GCredit is mainly a virtual loan so it was only applicable to GCash products like Pay QR, Pay Bills, and Online Payments. Now we can also get an actual loan in the form of GLoan.
What is GLoan?
GLoan is a loan solution that you can get in the form of actual cash in your GCash balance. This in turn you can use in any GCash service, including withdrawal or cash out, bank transfer, or send money to another person among others.
As this is a personal loan, you will also need to pay for it monthly.
How much can I avail and what are the terms?
The minimum amount is Php 5000 and the maximum is Php 25000. This depends on your GScore.
The loan term is 9-12 months depending on the amount. For Php 5000 – Php 15000, the loan term is fixed at 9 months while Php 16000 – Php 25000 you can choose between 9 and 12 months. There are no in-betweens.
The add-on interest rate is 2-4% per month, depending on your GScore. A caveat is that you won’t be getting the full amount, as there is a 3% fee outright.
Can I withdraw or cash out my GLoan?
Yes, you will need to go through cash-out via partners or via your GCash Mastercard. Take note that there are charges for cash-outs as well as via ATM.
How do I avail of GLoan?
It only takes a few minutes once you decide to go through with it. Here are the steps:
- From the main GCash page, go to “Show More…” and scroll down to see the GLoan button beside GInvest.
- Click the button and click Next on the intro pages. Once in the loan selection screen, select your terms if applicable. Take note that the terms may vary depending on your GScore.
- Confirm your loan term selection and input some of your KYC information to finish the registration.
- Confirm that you will be going through your application by inputting an SMS OTP.
- Once done, you will be receiving your GLoan in your GCash account.
Can you provide a sample computation of the dues and interests included?
The loan has an add-on rate monthly, meaning it takes into account the principal and computes using the full amount, even though there’s a 3% processing fee outright.
In my example above, I picked Php 5000 to borrow with an add-on rate of 2.89% and a loan term of 9 months.
Given: Amount to Borrow = Php 5000 Add-on Rate (monthly) = 0.0289 Loan term = 9 months Amount Borrowed Per month = 5000 / 9 months = 555.56 Amount Borrowed with Add-on Rate = 5000 * 0.0289 = 144.50 Monthly Due = 555.56 + 144.50 = 700.06
However, take note that you will not be receiving the full Php 5000, but only Php 4850, as there is a 3% processing fee — even though the computation is for the full amount.
How do the penalties look like?
Looking at the disclosure statement:
The penalty is a fixed fee of Php 100, and 0.15% of the daily outstanding principal balance. For example, using the same example previously and I wasn’t able to pay for the second month:
Given: Monthly due = 700.06 (check the previous example above) This is the second month, so there has already been a first payment of 700.06. Daily Outstanding Principal Balance (DOPB) = 5000-700.06 = 4299.94 Fixed penalty = 100 Variable penalty = DOPB * 0.015 = 64.50 Total penalties = 100 + 64.50 = 164.50 This also means that the more payments you've settled, the lesser the variable penalties you will incur.
Take note the the variable penalty is incurred every unpaid day.
What does “contractual interest rate” and “effective interest rate” mean in the disclosure statement?
These two interest rates take into account the principal getting smaller every month. As we are already using an add-on rate (which only takes account of the full principal per month), these are put in here as part of due diligence. For simplicity’s sake, we can focus on using the add-on rate only.
However, for completeness’ sake:
The contractual interest rate computes the interest payable based on the remaining balance per repayment.
The effective interest rate is the true interest rate you are paying based on the outstanding loan amount calculated after each principal repayment is deducted from your outstanding loan. In this case, it takes into account the actual loan amount you are getting, with the processing fee deducted.
What’s the difference between GCredit and GLoan?
GCredit is virtual money only, and can only be used with payments (online web pay, bills, and QR). GLoan is actual money you can use not only with payments but with all of the services GCash offers, including withdrawal via ATM.
How many GLoans can I avail? Does it affect my GCredit?
You can avail multiple times, but only one at a time. As long as a loan is effective, you need to pay in full before you can avail of another. This is different from GCredit and you can avail of both at the same time.
However, if you lapse in payment on either one, your GScore may decrease and it will make it harder to avail of both once GScore gets low enough.
Why isn’t GLoan available for me?
Either you are using an alternative GCash account, or GLoan is not yet available for your account.
How do I repay my GLoan?
You can pay in the app itself via auto-debit or by paying in advance. The auto-debit works similarly to GCredit where GCash informs you about the auto-debit by SMS before doing it later in the day.
Can I pay the loan in full in advance?
Yes, you can, however, you will still need to pay for the interest due as a whole. For example, my loan amount was Php 5000, and I tried to pay Php 5000 (even after deducting the 3% fee) and I still had Php 1267.86 left payable. Also, you can’t pay more than the balance.
You can get rebates in the form of unused interest if you paid in advance. For example, if you availed of a 12 month loan and you paid in full after only 3 months, you will be having a rebate of the 6 month interest amounts you did not use.
Can I avail again after paying my current GLoan in advance?
You will also be able to avail of another GLoan once you’ve paid of one in full.
My GLoan didn’t push through or I didn’t receive any funds. What should I do?
You need to wait for it for a few minutes. If it doesn’t come even after 24 hours, then you will need to file a support ticket.
We described how to avail of a GLoan in GCash. A GLoan is an actual loan you can get and then use with any GCash service. This is a loan, and hence this needs to be paid monthly which usually means an auto-debit from your GCash balance.
Availing of this loan is straightforward and easy. This also has better terms than other loan apps available in Google Play, as long as you have a high enough GScore.
If you’d like to learn more about GCash, I created a how-to on the basics of GCash.
Here is a list of links if you’re interested in the main GCash features:
- Cash in or Cash out
- GCash Scams
- Send Money
- Bank Transfer
- Payment via QR
- GCash Mastercard
- AMEX Virtual Pay
- Pay Bills
- Request Money
- Buy Load
- GCash Forest
- Book Movies
- GCash via USSD (*143#)
- Receiving Remittances
If you are also interested in knowing what resources I used to make this blog happen, please look at my resources page.
How do you like the tutorial? Did I miss anything? Please add your comments and suggestions below!