Grab Thailand launches new cash loans for partner merchants

Grab Thailand announced a revamped portfolio of cash loans aimed at its partner merchants, offering three distinct loan products to cater to businesses of all sizes. The new offerings include loan amounts up to 10 million baht with interest rates capped at 1% per month for larger businesses.

The initiative aims to boost working capital, enhance liquidity, and support entrepreneurs in expanding their businesses amidst challenging economic conditions. The loans boast user-friendly application processes, requiring no paperwork, quick approvals within one day, and convenient daily repayments.

Chansuda Thananityaudom, Deputy Managing Director of Commerce and Marketing at Grab Thailand, highlighted the sluggish economic environment influenced by both domestic and international factors. She noted that Thailand’s household debt levels remain high, impacting the uptake of new loans.

The second quarter also saw continued pressure from loan repayments, particularly in the public and business sectors, causing the commercial bank loan market to slow down by approximately 0.3% compared to the same period last year. Forecasts suggest that the loan market in 2024 will grow only by 1.5%, down from the previously expected 3%.

Despite the overall slowdown in the loan market, Grab’s loan services have shown robust performance and continuous growth, especially in providing loans to partner merchants. In the first half of the year, the number of merchants receiving cash loans from Grab increased by more than 15% compared to the previous year.

The non-performing loan (NPL) rate stood at 2.35%, which is lower than the national average, reflecting the quality of borrowers within Grab’s ecosystem.

Big Data

Grab has integrated AI and Big Data technologies into its risk assessment procedures, using a Behavioural Scorecard that evaluates the transaction behaviours of partner merchants via the application. This approach ensures more accurate loan approvals and reduces the risk of defaults.

Most entrepreneurs seeking loans from Grab require funds for working capital and liquidity enhancement. They use these loans for various purposes, such as purchasing raw materials, managing stock, handling employee payroll, managing cash flow, refurbishing storefronts, upgrading technology, and expanding their businesses.

Grab’s cash loan products for partner merchants are designed to assist small business operators and owners of small to medium-sized enterprises (SMEs). The loan limits are tailored to match the size and type of business, including:

1. Instant Cash Loan: Targeting small business operators (individual business owners) such as small shop owners, street food vendors, and small restaurants. The loan amount is up to 100,000 baht with an interest rate not exceeding 2.75% per month and a repayment period of up to nine months.

2. Instant Cash Loan Plus: Aimed at larger small business operators (individual business owners) who own bigger shops or have multiple branches. The loan amount is up to 1 million baht with an interest rate not exceeding 2.08% per month and a repayment period of up to 12 months.

3. Instant Cash Loan Extra: Designed for SME or franchise business owners operating as legal entities. The loan amount is up to 10 million baht with an interest rate not exceeding 1% per month and a repayment period of up to 12 months.

In addition to loan services, Grab has partnered with Chubb Samaggi Insurance Public Company Limited to develop an insurance service for Grab’s partner merchants called Business Protection Insurance. This insurance offers coverage against unforeseen events such as fires or natural disasters like floods, with coverage amounts up to 5 million baht and premiums starting at just 14 baht per day, reported KhaoSod.