Home Credit inks P2.25B bank load, eyes P12B in receivables

HOME Credit Philippines, a Prague-based finance technology company that offers in-store financing of smartphones and other goods, recently signed a syndicated loan with a total commitment of P2.25 billion. 

The loan was arranged by Citigroup Global Markets Asia Limited (Citi) and was participated in by some of the country’s largest banks, namely, Citibank N.A., Union Bank of the Philippines, East West Bank, Rizal Commercial Banking Corporation and CTBC Bank Philippines.

According to HCPH’s chief financial officer Zdenek Jankovsky, the loan will be used to sustain its fast and aggressive expansion in the country, as the company’s customer base approaches two million borrowers, supported by a workforce of 8,000 employees and counting.

“In only four years of operation in the Philippines, we have rapidly grown our customer base while establishing our presence in all major cities and provinces in the country,” Jankovsky said. “This syndicated loan is highly strategic in sustaining our steep growth, and we are happy to be partnering with leading banks who share our vision.”

Jankovsky noted that 2017 is a landmark year for the company, as it completed its nationwide roll-out and gained close to a million new customers on the way to a projected loan receivables volume of P12 billion by year end. 

“In terms of agility and speed of progress, HCPH can be compared to a startup, especially since we are only four years old. But in terms of customer base and volume being generated, we are already comparable to much older and mature companies,” Jankovsky said.

The HCPH executive noted that the company’s success may be attributed to its “financially inclusive” business model, as Home Credit provides loans even to first-time borrowers and those with no credit histories, as well as the ease and speed of loan application. 

Jankovsky said that Home Credit Philippines has “one of the fastest, if not the fastest, loan processing and approval times” in the industry, with applications approved in as fast as five minutes through their proprietary system, and requiring only two valid IDs from the applicant. 

These loan products come with “safe lending” features, such as the option to avail of insurance along with the loan; a 15 day “cooling-off” period that allows customers to pay back the full loan at no added cost within this time period; customer-friendly repayment tools meant to address various financial difficulties; and Home Credit’s “Our Commitment” that promises full transparency on loan products with no hidden charges.  

Launched in Manila in 2013, Home Credit Philippines has served over 1.4 million customers and has a network of retail partners that now spans more than 3,300 partner stores in Metro Manila and 39 provinces nationwide, where they offer 0% interest promos and other popular products.