PawnHero, LoanSolutions Partner To Provide Lending Options To Filipinos
E27.CO: The move is aimed at giving Filipinos easier access to loans and enabling more financial power
In the Philippines, applying for a loan is tedious work; most of the time, Filipinos need to take multiple trips to different banks just to check what type of loans each bank offers. Not only that, certain banks only lend to a specific spectrum of people and often reject loan applications with low credit scores.
While LoanSolutions answers the typical Philippine lending problem by matching borrowers to appropriate lenders and banks, CEO and Co-founder Jean-Patrick Bisson wants to take a step further. “Every borrower who visits our site, should be matched to several lenders and receive a loan at the best rate. We give them choices!” Bisson explained. “By partnering with PawnHero, we’re going to allow borrowers to use their pawned items as collateral and in return receive their loan,” he added.
Likewise, PawnHero reinvents the pawn shop industry in the Philippines by giving higher appraisals and lower interest rates compared to traditional pawn shops. As the first online pawn shop, PawnHero provides a quick and hassle-free solution for its customers to pawn their items online in exchange for cash.
“By charging half the interest rates what typical pawn shops charge, we are creating a better life for the unbanked. Our PawnHero Card, which we use to pay out the loans also empowers financial inclusion,” PawnHero Co-Founder, David Margendorff, told e27. “Through the partnership with LoanSolutions we allow more Filipinos to have access to affordable credit,” he added.
Users can benefit from this partnership by choosing the option to pawn their item on the loan application page of LoanSolutions. Users will then be asked to upload a picture of their pawned item, place a cash amount in exchange for it, fill in basic details about the item, and submit the pawn request. Users will receive a text or email if the request is approved. Upon approval, PawnHero will be responsible for receiving the pawned item and depositing the money to the users’ accounts.
Both companies have expressed that they will soon be expanding to the rest of Southeast Asia