Diskartech, the digital bankING arm of the Rizal Commercial Banking Corporation (RCBC) recently announced the expansion of its financial services in the form of low-interest loans targeting micro, small and medium enterprises (MSMEs).
RCBC Executive Vice President and Innovation Officer Lito Villanueva said the lending program will formally open this coming April, after the Holy Week.
Eleven different rypes of lending services will be available, including loans for the purchase of cars, tricycles, trucks and motorcycles.
Diskartech will initially partner with Asialink Finance Corporation and Cepat Kredit Financing, Inc. in administering the loans to the target users, but will eventually link with about 18 more financial institutions.
The interest rate will be 7 to 10 per cent or an effective rate of 8 to 12 per cent, depending on the type of loan availed of. Maturity of loans will also vary, depending on type of products and loan.
Diskartech and partners will have a revenue-sharing arrangement that would still keep the program the most affordable in the market.
Diskartech is the first and only digital bank in the Philippines.
A digital bank is one that combines traditional banking with the Internet. In digital banking, the Net is key to various banking functions, including opening a bank account, transferring funds, setting up direct debits, making remote payments, sending remittances, and others.
RCBC welcomes the opportunity to work with smaller banks, Villanueva said.