Home Credit revealed the top items for customers applying for loans
HOME CREDIT LOANS — The consumer finance company recently revealed the top items for customers applying for loans.
On Tuesday, Home Credit said that laptops and bicycles have become the top items for customers applying for loans.
Home Credit Philippines Director and Treasurer Zdenek Jankovsky said that it’s back to school season and they grew a lot of their business in the laptops. He also said that bicycles were another hot item for borrowers.
“Home Credit is known for financing mobile phones, but recently, it is very important, the laptops. It is back to school season, we grew a lot of our business in the laptops,” Jankovsky said. “And in recent years, when people are more focused on [a] different type of exercise. Where they can and cannot go, for example, bikes became very popular for financing through Home Credit.”
According to Home Credit Philippines, it has not seen any negative impact from the monetary policy tightening of the Bangko Sentral ng Pilipinas (BSP) so far.
ABS-CBN News reported that the central bank has so far raised interest rates by 175 basis points (bps) this year in an attempt to tame inflation by reining in consumption and spending.
However, Jankovsky said that he has yet to see the rate hikes affect consumer behavior. According to him, he wouldn’t say that there’s an impact on the consumption from the monetary tightening at this time.
Based on a report, loans for the average Home Credit borrower would range between PHP 12,000 and PHP 15,000. Home Credit rewarded good borrowers with higher loan amounts of between PHP 30,000 and PHP 40,000.
Jankovsky said that they didn’t observe any increase in bad debt, adding that they are very happy with the performance of their portfolio when it comes to the diligence of their customers as it’s “doing well”.
According to Home Credit, it has disbursed PHP 178 billion in loans to nearly 9 million Filipino consumers since 2013 and is also present in some 10,000 points of sale across the country.