Phones, laptops top purchases for loans

MANILA, Philippines — Gadgets such as mobile phones and laptops are the top consumer products being purchased in the Philippines using loans, according to Home Credit Philippines.

In an interview with reporters, Home Credit Philippines chief marketing officer Sheila Paul said gadgets account for around 55 to 60 percent of consumer products being purchased by their borrowers, followed by television sets.

She also said many of the consumer finance company’s borrowers are currently purchasing air-conditioning units and e-bikes due to the summer season and preference to switch to more energy-efficient units.

These findings are based on a study conducted by Home Credit to look into the financial behavior of their target market.

Paul said the study also found that women influence the purchase decisions using loans.

“In the segment we’re targeting, the decision makers are really the women. It’s either the wife or mother who are the ones who are really consulted on these kinds of purchases,” she said.

Home Credit’s customers are typically those between the ages of 28 to 35 years old and borrow an average of around P15,000 to P20,000.

Paul said the company is currently studying to offer loans to finance motorcycle purchases.

“If ever we go into it, it would be the highest value item,” she said.

Asked about plans to cater to demand for loans for concert tickets, she said she believes there is no need to borrow for such.

By geographical location, she said Metro Manila is the company’s biggest market.

At present, Home Credit has 15,000 retail partners and 8,000 sales agents stationed in stores to help process loans.

For stores without Home Credit sales agents, Paul said the frontliners are usually trained to help process loans.

The company ended 2023 with 1.1 million new customers, bringing the total tally to 10.4 million.

“For us, 2023 was a good year. But we want to be conservative for 2024 because there’s so much happening in the global arena,” she said.

Since 2013, Home Credit has been helping broaden financial inclusion in the country by lending and providing other similar services often to first-time borrowers.