Home Credit investing P19B in PH in next 2 years

October 17, 2017 - 7:41 PM

MANILA – Prague-based Home Credit targets to ramp up its operation in the Philippines by investing additional P18.6 billion over the next two years, HC Consumer Finance Philippines, Inc. Chief Financial Officer Zdenek Jankovsky said.

Jankovsky said in a briefing Monday the projected amount of investments here would support Home Credit’s expanding network and customers in the Philippines.

Home Credit provides financing for purchasing gadgets and home appliances for those who do not have credit cards.

It also offers cash loans for other purchases aside from gadgets and home appliances.

Jankovsky said the company is making an impact in the Philippines as it caters financial services mostly to unbanked Filipinos.

He added that about 70 to 80 percent of its clients are first time borrowers, and those who do not have credit history.

“We bring financial services to these unbanked clients, so that they don’t need to tap the gray market loans,” the executive noted.

He added that the company also provides installment scheme that is not difficult for its clients to pay.

Borrowers can also pay their loans in various payment centers and payment partners of Home Credit.

According to Jankovsky, two-thirds of the firm’s new sales volumes are loans for gadgets.

With 4.0 percent interest rate, average loan for gadgets is at P9,000 payable in nine months.

On the other hand, Home Credit’s average cash loan is at P41,000 payable for 33 months.

Monthly interest rate for cash loan is at 2.99 percent . Moreover, Jankovsky said part of Home Credit’s expansion is to increase its partner point of sales stores in the country by 50 percent in 2018 from the current 3,300 outlets.

Also next year, the firm eyes to expand its workforce from 8,000 to 12,000. Since it started operation in the Philippines in 2013, Home Credit invested some P6.3 billion. It also has two call center facilities in Quezon City.