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GXS Bank launches flexi loans from as low as S$200 with tenure as short as 2 months

The GXS FlexiLoan allows for early repayment without any fees.

Image showing Grab, Foodpanda and other delivery riders waiting for their parcels, with inset of Grab, Singtel and GXS logos.
Grab-Singtel-backed GXS Bank today launched a flexible loan product targeted toward individuals with difficult access to credit facilities. (PHOTO: Reuters, GXS Bank)

SINGAPORE — Digital bank GXS announced on Tuesday (25 April) the launch of the GXS FlexiLoan, a personal loan product that allows individuals to borrow as little as S$200 with a tenure as short as two months.

The Grab-Singtel-backed digital bank said in a statement that the GXS FlexiLoan is available to eligible Singaporeans and targeted towards underbanked individuals with difficult access to credit.

The loan doesn't require any type of collateral, and borrowers can repay the loan partially or in full without any early repayment fees or hidden processing fees.

However, customers who have late payments will be charged an interest of 18 per cent per annum.

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Other features of the loan include enabling borrowers to make multiple loan drawdowns from their credit line without going through underwriting and approval each time. Borrowers can also choose flexible repayment terms, such as choosing a monthly repayment date that is aligned with their salary crediting date.

Interest rates for the loan start from 3.8 per cent per annum and are based on the individual's credit risk scoring assessment. The effective interest rate (EIR) – the percentage of interest on a loan if compound interest accumulates for a year with no repayment – is 7.15 per cent per annum. GXS stated on its website that the EIR is calculated based on an average loan amount of S$10,000 with a 24-month repayment period.

Charles Wong, CEO of GXS Bank, at the launch event for the GXS FlexiLoan.
Charles Wong, CEO of GXS Bank, at the launch event for the GXS FlexiLoan. (PHOTO: GXS Bank) (GXS Bank)

Eligible individuals must meet the regulatory requirements in Singapore, including having a minimum annual income of S$20,000 and being at least 21 years old.

By-invite-only savings account launched earlier

The new offering is the second product launch from the bank after the GXS Savings Account, which was launched in August 2022 and is currently available on a by-invitation-only basis. GXS previously said that it aims to serve gig economy workers, self-employed entrepreneurs, small businesses and those new to the workforce with their products.

"With the launch of the GXS FlexiLoan, we are turning the spotlight on the barriers and hindrances in unsecured loan products that hold individuals back from stretching towards their goals," said GXS chief executive officer Charles Wong in a statement.

GXS Bank is backed by a consortium consisting of ride-hailing giant Grab and telecommunication provider Singtel. The bank draws insights from data made available by the Grab and Singtel ecosystem, which collectively has over three million customers.

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