Navigating My Financial Journey with GCash Loan: A Personal Insight

In today’s digital age, managing finances has become more streamlined yet complex, especially with the myriad of options available at our fingertips. One such innovation that caught my attention is the GCash Loan feature, also known as GLoan. Having now used this service twice, I embarked on a journey to explore this facility, offering a candid recount of my experience, highlighting the pros, cons, and the application process, all from a personal perspective.

Embracing the Digital Loan Era: My GCash Loan Experience

A Repeat Customer: My journey with GCash Loan started when I first borrowed P5,000 -P150 = P4,850 per month (8 months) I paid P755.06. The last month I only paid P755 only.  A total payment of P6,795.48. The process was seamless, and the convenience was unmatched. After repaying my initial loan, I didn’t hesitate to apply again, this time for P10,000 - P300 = P9,700. The repeat experience not only demonstrated my trust in the service but also reinforced the ease and reliability of accessing funds when needed.

The Allure of Convenience: The standout benefit that resonated with me was the sheer convenience. Applying for a loan without leaving the comfort of my home felt revolutionary. No queues, no paperwork – just a few taps on my phone, and the loan was processed.

Instant Gratification: The funds were instantly available in my GCash wallet upon approval. This immediate access to funds was a game-changer, especially in times of urgent financial needs.

Clarity and Transparency: I appreciated the upfront details about the loan. Knowing exactly what I owed and when it was due helped me plan my finances better, ensuring no surprises along the way.

Tailored to My Needs: The flexibility to choose the loan amount and repayment terms allowed me to tailor the loans to fit my financial situation, a personal touch that I valued highly.

Collateral-Free Freedom: Not having to provide collateral made the process feel less risky and more accessible, adding to the overall positive experience.

Facing the Challenges: The Cons

The Cost of Convenience: Despite the convenience, I noted the interest rates were somewhat higher than traditional bank loans. It’s a crucial factor to consider, especially when budgeting repayments.

GCash loans have a 0% interest rate for the first 14 days. After that, the interest rate ranges from 1.59% to 6.57% per month. GCash also charges a one-time processing fee of 3% of the total loan amount. 

Though for some reason, GCash is affordable with low fees and interest rates compared to traditional loans and investments. GCash is also accessible to anyone with a mobile phone and internet connection. 

For my first loan of P5000 they deducted P150 and I received P4,850 only and for 8 months I paid P755.06 (the last month I only pay P755) to conclude my payment for 9 months. Total payment for 9 months is P6,795.48.

For my second loan for P10,000. I received P9,700 only. Now, I'm partially paying P1,510.11/month.

According to LendingTree, typical bank loans have an average interest rate of 7-9%. According to Bankrate, the average interest rate for bank business loans in October 2023 is 5.75-12%.

But this varies on your GCash usage.

Eligibility Hurdles: The realization that not everyone could access this feature was a bit of a letdown. Your eligibility is based on your GScore, influenced by your activity on the platform.

Discipline in Repayment: The responsibility of timely repayment is significant. Any lapse in repayment can negatively impact your GScore, affecting future loan opportunities.

Wallet Limitations: The loan amount is limited by your wallet’s capacity, which meant I had to plan precisely how much I could borrow and for what purpose.

My Application Adventure: A Step-by-Step Guide

The application process for GCash Loan was straightforward and user-friendly:

1. App Exploration: Logging into my GCash app, I easily located the GLoan feature under the ‘Borrow’ section.

2. Eligibility Excitement: Finding out I was eligible was thrilling. The app also offers tips to improve your eligibility if you’re not there yet.

3. Choosing My Terms: Selecting the loan amount and repayment schedule allowed me to customize the loan to my financial needs, giving me control over my financial commitments.

The photo above shows that if I have made a complete payment, I am now able to borrow P15,000 or more.

4. The Approval Anticipation: Confirming my loan details was a breeze, and the approval was rapid. The funds were instantly credited to my wallet, ready for use.

Reflecting on My GCash Loan Journey

Using GCash Loan has been a revealing and beneficial experience. It’s a testament to the power of digital finance, offering modern convenience with essential financial services. While it has its drawbacks, such as higher interest rates and strict eligibility criteria, the benefits like convenience, speed, and flexibility have been incredibly valuable in my personal finance journey. For anyone considering this service, it’s important to weigh the pros and cons, consider your financial situation, and use such services wisely and responsibly.

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