Touch ‘n Go launches the first digital microloan, GOpinjam

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TOUCH ‘n Go Group (TnG) is aiming to shell out around RM300 million this year following the launch of GOpinjam, an inclusive digital personal loan proposition available in TnG eWallet and delivered 100% electronically.

GOpinjam is developed in partnership with CIMB Bank Bhd which offers personal loans as low as RM100 up to a maximum of RM10,000 for Malaysians between the ages of 21 and 63.

The flexible repayment period ranges from one week to one year, with no hidden charges for early settlement. Interest rate starts from 8% per annum

This is believed to be a huge breakthrough in the world of loans where new users who wish to apply must submit either a monthly payslip or the latest Employee Provident Fund statement as well only basic information for the loan application.

Prospective borrowers must have a minimum monthly income of RM800 to access GOpinjam. It is about promoting inclusion and accessibility to as many people as possible by targeting underserved and low-income segments.

“The credit underwriting process is also differentiated, built using credit bureau data and e-wallet spending data, which improves accessibility for the underbanked segment,” according to a statement released by the group.

“The element of financial inclusion has always been at the forefront of our thinking, and we expect GOpinjam to be available to those who otherwise would not have been able to access formal credit facilities,” said TnG Group Managing Director Effendy Shahul Hamid.

Acceptance of loan application will be known within one business day of complete and accurate submission of income documentation.

Effendy expects the approval rate to be higher than the current banking industry approval rate of around 25-30%.

Applicants will see the funds reflect in their TnG e-wallet or CIMB Bank account immediately upon approval. However, returning users will not need to go through the submission process instead of getting direct approval and instant loan disbursement.

This is the first loan offering that allows users to borrow from RM100 through CIMB Bank’s e-Zi Tunai personal loan product, which has been endorsed by Bank Negara.

Effendy said TnG wants to educate borrowers on debt management while helping Malaysians through legitimate finance facilities rather than opting to borrow from unauthorized lenders.

During his speech at the launch, Effendy said there were over 60 million users for TnG eWallet with over five million monthly transactions with the group.

This makes it the largest e-wallet company in Malaysia with over RM15 billion in total transaction value last year, 20 times more than it was in 2019.

Effendy said about five million TnG cards and two million radio frequency identification (RFID) tags are tied to the TnG e-wallet.

TnG’s other key financial services, such as TnG’s GO+ micro-investment proposition launched last year, have around 2.25 million users, while on the insurance side, TnG has contributed 31% to the Perlindungan Tenang voucher program by the government.

Meanwhile, the CIMB group CEO Datuk Abdul Rahman Ahmad said CIMB is proud to support GOpinjam through his CIMB e-Zi Tunai personal loan.

“This development is also in line with our long-term strategy and intent for TnG Group, and to enable it to become one of Malaysia’s leading non-banking digital financial services providers,” Abdul Rahman said in a statement.

The GOpinjam was officially launched by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.

During his launch speech, Tengku Zafrul said that the past two years have accelerated inevitable trends ranging from the way people make payments to the consumption of financial products.

He added that there was an increase in electronic payment transactions for an average Malaysian to 221 transactions last year from 150 transactions in 2019. Similarly, mobile banking and e-money transactions grew at a faster rate. .

According to Tengku Zafrul, mobile banking transactions nearly quadrupled to RM800 in 2021 from RM203 in 2019.

Meanwhile, e-money transactions nearly tripled to RM51 billion in 2021 from RM18 billion in 2019 with 47 non-bank money issuers.

Tengku Zafrul believes that consumers and merchants have quickly embraced the new normal of a cashless environment.

He also believes that this development would not be possible without the acceleration of technology adoption and the role of the financial and payments industry like TnG in promoting a digital and mobile mindset.

In advancing the Finance for All agenda under the Five-Year Financial Sector Action Plan, the Government recognizes that it is not only the availability of digital financial products that is important, but also access to these products.

“This year will continue to be a year of transformation underpinned by strong fundamentals in the financial sector and ever-changing trends,” said Tengku Zafrul.

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