UBX, the fintech arm of Union Bank of the Philippines, has teamed up with e-commerce platform Lazada to offer credit lifeline to micro, small and medium enterprises (MSMEs) grappling with the coronavirus (COVID-19) pandemic.
UBX, through its lending marketplace, SeekCap, aims to help more MSMEs – such as vendors operating on Lazada’s platform – get access to financing.
To date, over 6,000 MSMEs have signed up on the lending marketplace, with a 300 percent increase in loans application posted during the first quarter, UBX announced.
In a statement, UBX said it’s “committed to assist MSMEs survive and get back on their feet after the pandemic,” adding that SeekCap would be a “vital instrument towards the achievement of this objective.”
SeekCap allows MSMEs to apply using a purely digital platform. They can complete their application and get updates on their approval remotely. There is no need to submit physical documents and appear at a bank to get approved.
This platform also seeks to allow MSMEs to apply for a loan product tailored to their needs, including financing for their inventory, payroll needs, expenses payables, and similar activities.
Loan applications through SeekCap can be initially approved the same day, which means that the documents submitted are still subject to review, and only until then will the disbursement take place. Currently, SeekCap offers business loans from P50,000 to P800,000 with a 2 to 3 percent monthly interest.
SeekCap continues to bring additional lenders to the platform. Progressive Bank, UnionBank and EON SME Credit Card are among the lenders to date.
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