Grab and SingTel-backed digital bank GXS Bank has launched GXS FlexiLoan, its first unsecured credit product, following the launch of its savings account in August 2022.
Targeted at gig workers, entrepreneurs and those new to the workforce, GXS FlexiLoan’s interest rates start from 3.8% per annum, dependent on the individual’s credit risk assessment. The effective interest rate is 7.15% p.a.
The minimum loan amount is $200, and loan tenures start from two months, with custom monthly repayment dates, says GXS on April 25.
GXS FlexiLoan is available to all eligible individuals aged 21 to 65 who meet the regulatory requirements in Singapore, including having a minimum annual income of $20,000.
GXS FlexiLoan lets customers pay off their loan partially or in full without any early repayment fees and with the additional perk of interest savings. According to GXS, the product combines the advantages of a credit line with a personal instalment loan to provide users with greater control and flexibility to better manage their finances, as customers can make multiple loan drawdowns from their credit line.
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Jenn Ong, head of credit product at GXS, says the cash-strapped individuals who are underserved may turn to loans with high interest rates or hidden fees. “Taking on a loan may also not be feasible for those who may have irregular income and are looking for flexibility in repayments. The GXS FlexiLoan takes all these factors into consideration to account for our customers’ different needs and circumstances.”
Ong adds: “Whether to support a side hustle or a family goal, we hope that our customers will feel that the power is in their hands to shape the GXS FlexiLoan their way.”
