Grab offering loans of up to $100,000 to companies
Technology company Grab is offering loans of up to $100,000 to companies under its latest initiative.
The loan process takes two minutes and can be done online. Companies that are successful in their loan applications can receive the money in three days.
Grab, which charges interest from 1 per cent a month, advertised the loan option on Facebook earlier this week.
The advertisement provides more details on Grab's foray into financial services, a segment the online platform has been eyeing.
Grab is most known as a ride-hailing platform. It also provides food and delivery services, and has a mobile wallet as well as a fintech arm called Grab Financial.
When asked, a spokesman said the initiative "provides working capital support which we know is a key area of concern for micro-entrepreneurs and small businesses as they scale".
Grab is "committed to supporting the growth of micro-entrepreneurs and small businesses". It did not respond to questions on the initiative's launch date, its loan assessment criteria and the loan volume so far.
Grab had announced in March last year a partnership with one of Japan's largest consumer financing companies, Credit Saison, to provide loans to consumers, micro-entrepreneurs and small businesses across South-east Asia.
The focus, it said, was on providing working capital loans, financing for smartphones and consumer goods financing to "meet the needs" of Grab drivers, agents and merchants.
Grab said then it will use data sets such as transport movement, geo-location and transaction data as reliable alternatives to traditional credit ratings.
The tech company has raised more than US$8 billion (S$11 billion) since it was formed in June 2012.