Consumer goods financing platform Home Credit Philippines said it added 1.1 million users to its customer base, bringing the total to 10.4 million in 2023.
Home Credit Philippines chief marketing officer Shiela Paul said the company expected the number of users to surge in 2024, as it expands loan coverage to big-ticket consumer goods such as the mobile phones and e-bikes.
“We are studying if we can actually afford to give loans for motorcycle acquisition. We are yet to see how this will unfold this year. If there is a chance, then this might our biggest consumer product loan yet,” Paul said over the weekend.
Mobile phones comprise the biggest share in the product portfolio, accounting for 55 percent to 60 percent of the total. Television sets are the second biggest, followed by laptops which saw a remarkable increase in share during the pandemic.
Consumers are also keen on e-bikes and air-conditioner acquisitions.
“In fact, our pro-energy efficient summer campaign is focused on air conditioners. We are encouraging consumers to switch to sustainable alternative,” Paul said.
It said that based on in-house data analytics, the average consumer product loans extended to borrowers fall between P15,000 and P20,000.
Most of the borrowers are millennials, belonging to the 28 to 35 years age bracket, and many are young married couple or families.
Home Credit asks for 30-percent down payment for consumer product loan.
The financing firm also introduced many products that are responsive to the merging financing needs of Filipinos.
Cash loans are mostly offered to borrowers of good standing and those who have been loyal clients of Home Credit.
The company has 15,000 partner retailers, including malls, appliance stores and other merchants.
Paul said the company would release its latest study of borrowing behavior of Filipinos and other related analytics in an event in April 2024.