MoneyMatch, an online peer-to-peer lending platform developed by local company FinTech Global Inc., aims to provide Filipinos an alternative to “5-6” scheme, or moneylenders charging exorbitant interest rates on loans.
MoneyMatch managing director Jay Bautista said in an interview the new leading platform would make borrowing or lending money more accessible and convenient to Filipinos.
“MoneyMatch makes lending and borrowing easier and much more convenient. People will have the power to transact without dealing with standard financial institutions, such as banks. With P2P lending, the borrower can enjoy much more flexible terms and, lenders are assured that their investment is secure,” Bautista said.
Bautista said a borrower could apply for loan from P10,000 to P2 million which could be used to start to a small business, get a housing loan, or a new car, and pay for their loan at terms that they could afford.
Investors or lenders with a sufficient capital in their account could view loan applications that were up for bidding and choose which loans to fund, and bid on it. Lenders will have the option to bid for more than one loan.
The interest rate for the loans will range from 15 percent to 36 percent depending on creditworthiness of the borrower. MoneyMatch will then notify the individuals or small and medium enterprises who are applying for a loan, if their loan is approved including detailed instructions on how to claim a loan or deposit a loan.
Borrowers with approved loans can easily withdraw through any PBCom branches. The entire process takes only 24 to 48 hours. Repayment period will be between six months and 24 months.
Bautista said the process was also very safe with a screening of every applicant before approval.
Bautista said since the online platform was soft launched in May, some 39 borrowers and seven lenders had registered with MoneyMatch.
Most the borrowers are millennials, employed individuals who would want to borrow to finance housing renovations, travel and payment of tuition.
The Securities and Exchange Commission has been going after lending companies that were charging very high interest rates on loans extended to already struggling Filipinos.