Home Credit riding high on serving Filipinos ignored by banks: Sets P18.B expansion in 2 years
Prague-based Home Credit is planning to spend triple its investments in the next two years to hire more people and expand its point of sales networks for “unbanked” Filipinos.
HC Consumer Finance Philippines, Inc. Chief Financial Officer Zdenek Jankovsky said the new investments of P18.6 billion would support Home Credit’s expanding network and customers in the Philippines.
Home Credit provides financing for purchasing gadgets and home appliances for those who do not have credit cards.
It also offers cash loans for other purchases aside from gadgets and home appliances.
“We bring financial services to these unbanked clients, so that they don’t need to tap the gray market loans,” said Jankovsky.
He said that about 70 to 80 percent of its clients are first time borrowers, and those who do not have credit history.
The company also provides installment scheme that is not difficult for its clients to pay.
Borrowers can also pay their loans in various payment centers and payment partners of Home Credit.
According to Jankovsky, two-thirds of the firm’s new sales volumes are loans for gadgets.
With a 4 percent interest rate per month, average loan for gadgets is at P9,000 payable in nine months.
On the other hand, Home Credit’s average cash loan is at P41,000 payable for 33 months at 2.99 percent interest per month.
Jankovsky said part of Home Credit’s investments would be used to increase its partner point of sales stores in the country by 50 percent in 2018 from the current 3,300 outlets.
The firm is also eyeing to expand its workforce from 8,000 to 12,000. Since it started operation in the Philippines in 2013, Home Credit has poured in some P6.3 billion into the country. It also has two call center facilities in Quezon City. (PNA)