Malaysia’s first automated short-term micro-loan provider
Moneylending may seem like a taboo for many people. When we think about moneylending, the first thought that crosses one’s minds are the loan sharks or in Malaysia, better known as ‘Ah Longs’ who use aggression to collect debts.
A wiser way advised by the elderly would be to seek personal finance assistance from banks if the need arises. However, it is very unlikely to achieve this if you are already in debt and need that extra cash to settle your outstanding debts – as in order to qualify for a personal loan from a bank, one would need to score well in their pre-approval checks and most of the time, your application would be rejected.
This sort of rejection is what forces people to reluctantly approach loan sharks as they are pushed to a corner.
What if there was a platform in-between this? What if there was a platform that isn’t too stringent with its approvals, yet not aggressive with recovery and fully legal?
On 24 April 2019, GoodKredit Malaysia (GoodKredit) was unveiled to the public at a press-conference. Being the country’s first automated short-term micro-loan provider, GoodKredit’s objective is to empower Malaysians in need of urgent funds with a quick financial solution, utilising state-of-the-art technology and credit scoring algorithms via mobile devices.
GoodKredit acts as an alternative to the traditional loan platforms. The GoodKredit mobile app is designed to empower eligible Malaysians with a short-term micro-loan solution to address their financial situation.
“GoodKredit is here to make lending more efficient, scalable and an option to those truly in need. This is a huge untapped opportunity for us to empower Malaysians who are facing unanticipated needs and less able to access the traditional financial systems. GoodKredit offers the financially undeserved, speed to meet emergencies for needs…not wants”, said Cheok Tuan Oon, CEO of GoodKredit.
Cheok then went on to elaborate that GoodKredit strives to build a more financially inclusive ecosystem that leads to a prudent and disciplined society. He further explained that GoodKredit wasn’t born to just provide funds – most importantly, the company was set up to educate the ‘rakyat’ on financial responsibility.
“When people approach us for a loan, we do a check on them. The data we receive on their financial outstanding would allow us to further study their current debts. Instead of just lending them the money for immediate and superficial solutions, we provide them with consultation to manage their debts better for a long-term, permanent solution”, he said.
Also speaking at the press conference was Amelia Tan – Head of brand and communications who explained that GoodKredit utilises in-house built technology as well as with other financial information provided through its partnership with CTOS, noting that GoodKredit would know within 30 minutes whether a loan is approved or has been rejected. Upon approval, funds will be disbursed to the recipient in just one working day.
Providing micro-loans means that GoodKredit would allow applicants to borrow sums not exceeding RM10,000. This makes payback more manageable as the sum isn’t too large. Furthermore, based on evaluation, GoodKredit aims to also be flexible to its borrowers by allowing a six, nine or 12-month repayment tenure at an Annual Percentage Rate (APR) of 18 percent, with no needed collateral or guarantor.
Aimed at the B40 and M40 segment of society, Tan also explained that the company seeks to enhance financial inclusion by providing applicants with financial literacy. She further explained that there is a need for increased financial education and accelerating inclusion of the underserved segment of the market. “When these groups are given due consideration and supported within the eco-system, individuals, families and communities will begin to prosper”, he added.
GoodKredit is now available nationwide and may be downloaded from the Apple App Store and Google Play Store. For more information, surf to www.goodkredit.com.my