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MANILA, Philippines — Digital lender JuanHand allows consumers take out additional loans within their credit limit without first settling their existing debt, boosting lending options as bank credit growth slows.
Loans extended by big Philippine banks grew 9.8 percent year-on-year in June, the slowest pace in four months, as borrowers become more cautious about taking on debt, according to Bangko Sentral ng Pilipinas (BSP).
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Bank lending growth fell to 12.1 percent in May, while outstanding loans reached ₱17.33 trillion at the end of June.
Against this backdrop, JuanHand introduces a top-up loan that lets eligible borrowers apply for additional funds while they still have an existing loan.
The additional borrowing must remain within the borrower’s available credit limit and meet JuanHand’s eligibility requirements.
WeFund Lending Corp., which operates JuanHand, uses an artificial intelligence-powered underwriting tool to assess borrowers. The system can approve applications in as little as five minutes, the lender says.
Borrowers can take out loans of up to ₱50,000, with daily interest rates starting at 0.025 percent, depending on the loan terms and the borrower’s eligibility.
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“As financial services become increasingly digital, our responsibility goes beyond providing access to credit. We also have a role in helping Filipinos become more informed, vigilant, and confident when navigating the digital financial ecosystem,” WeFund president and CEO Francisco Roberto Mauricio said.
FinVolution Group, listed on the New York Stock Exchange, owns JuanHand’s Philippine operations. It has disbursed more than P116 billion in loans to over 20 million Filipinos.
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The rollout comes as Filipinos increasingly use digital lenders, e-wallets and digital banks to access financial services outside traditional banking channels.
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However, allowing borrowers to take out additional funds while an existing loan remains unpaid could also increase their debt burden. Borrowers remain subject to the interest rates, fees, and repayment terms of each loan.
JuanHand requires applicants to provide a registered mobile number and one valid identification card before its automated system evaluates their profile. /pai
