Unveiling Cashalo: A Digital Lending Powerhouse in the Philippines
Cashalo has rapidly established itself as a significant player in the Philippine digital lending landscape, addressing the credit needs of the nation's underbanked population. Operated by Oriente Express Techsystem Corporation (OETC), and with all loans funded by Paloo Financing Inc., Cashalo has carved a niche by providing convenient, unsecured credit via its mobile application and website. Since its launch in October 2018, the company has demonstrated remarkable growth, disbursing over five million loans and serving an extensive customer base of eight million users across the archipelago.
Founding and Corporate Structure
Cashalo was founded on October 23, 2018, as a strategic joint venture between Express Holdings Inc., a subsidiary of the Philippine conglomerate JG Summit Holdings, and Oriente, a Hong Kong-based technology partner specializing in digital finance. This strong foundational backing has enabled Cashalo to leverage significant local market insight combined with advanced technological capabilities. The company is officially registered with the Securities and Exchange Commission (SEC) under Registration No. CSC201800209 and holds Certificate of Authority No. 1162, legally authorizing its consumer financing activities in the Philippines. In 2024, Cashalo was acquired by Empower Finance, a United States-based entity, signaling its integration into a broader international financial technology ecosystem. This acquisition was further bolstered in June 2025 by a substantial US $75 million funding facility, earmarked to fuel product expansion and deeper penetration into rural markets.
Target Market and Strategic Vision
Cashalo’s business model is sharply focused on delivering purpose-based, unsecured digital credit to underbanked Filipinos who often lack access to traditional banking services. Its offerings cater to diverse needs, including individuals requiring short-term working capital or emergency cash, online shoppers utilizing "Buy Now, Pay Later" options at partner merchants, and microentrepreneurs seeking financing for inventory or operational costs. Key executives such as Hamilton Angluben, General Manager of OETC, and Luke Stidham, President of Cashalo (under Empower Finance), along with Geoffrey Prentice, Co-founder of Oriente, guide the company’s strategic direction, emphasizing financial inclusion and technological innovation to serve its target demographic effectively.
Cashalo's Diverse Credit Offerings: Loans Tailored for Filipinos
Cashalo provides a range of digital credit products designed to meet various financial requirements, emphasizing accessibility and speed. These products are primarily delivered through its user-friendly mobile application, streamlining the borrowing experience for its customers.
Cash Loan: Quick Funds for Everyday Needs
- Amount: Borrowers can access amounts ranging from ₱1,000 to ₱7,000, providing quick financial relief for immediate expenses.
- Interest: Interest rates start from 3.95% per month, which translates to an effective daily rate of approximately 0.5%. This rate is clearly disclosed to ensure transparency.
- Terms: Repayment periods for cash loans can extend up to 90 days, offering flexibility to borrowers.
- Features: These are unsecured loans, meaning no collateral is required. The entire application process is paperless and conducted online, enhancing convenience.
Lazada Loan: Empowering Online Shopping
- Amount: This specialized loan allows users to borrow up to ₱5,000.
- Interest & Term: The interest rates and repayment terms for Lazada Loans are typically aligned with those of the standard Cash Loan product.
- Usage: Funds from a Lazada Loan are directly loaded into the borrower's Lazada Wallet, specifically for purchases on the Lazada e-commerce platform. This product supports the growing trend of online shopping in the Philippines.
Buy Now, Pay Later: Flexible Payments for Retail Purchases
- Interest: Cashalo’s Buy Now, Pay Later (BNPL) service offers highly competitive rates, with interest as low as 0% at select partner stores. This feature makes high-value purchases more manageable.
- Installment Periods: Typically, installment plans range from three to six months, allowing customers to spread the cost of their purchases over time.
- Merchant Network: This service is available at over 1,000 partner merchants across the Philippines, including prominent retailers such as SM, Robinsons, Vans, and Puma, significantly broadening its utility for consumers.
Interest Rates, Fees, and Loan Terms
Cashalo maintains a transparent approach to its pricing structure. Origination and processing fees are incorporated into the disclosed interest rate, eliminating hidden charges often referred to as "kaltas." In the event of late payments, an additional interest charge is computed on the principal amount, adhering strictly to the guidelines set by the Bangko Sentral ng Pilipinas (BSP). While minimal service fees may apply for certain transactions, customers are always notified in advance, ensuring full disclosure.
Application Requirements and Process
The application process for Cashalo's products is designed to be straightforward and accessible. Since all loans are unsecured, no collateral is required. Applicants must be at least 18 years old and possess a valid government-issued identification document. Additional requirements typically include proof of billing and details pertaining to employment or income, which are crucial for credit assessment.
Leveraging Technology: The Cashalo Mobile App and Operational Excellence
At the core of Cashalo’s operations is its robust technological infrastructure, particularly its mobile application, which facilitates a seamless user experience from application to disbursement and repayment. This digital-first approach allows for widespread reach and efficient service delivery.
The Cashalo Mobile Application: Features and User Experience
The Cashalo mobile application is available on both Android (Google Play Store) and iOS (Apple App Store) platforms, boasting over five million downloads and impressive user ratings—4.6 stars on the Play Store from over 200,000 reviews and 4.7 stars on the App Store from 30,000 reviews. Key features of the app include real-time application tracking, convenient invoice uploads, scheduled repayment options, and integrated checkout capabilities for partner stores. This comprehensive functionality ensures that users can manage their loans effectively and efficiently, contributing to the high satisfaction ratings.
Credit Scoring and Disbursement Mechanisms
Cashalo employs sophisticated proprietary alternative data models for credit scoring and underwriting. These models leverage a range of data points, including smartphone metadata, banking transactions, and social data, processed through machine learning algorithms. This innovative approach allows Cashalo to accurately assess the creditworthiness of thin-file borrowers—individuals with limited or no traditional credit history—who are often overlooked by conventional financial institutions. Once approved, funds are disbursed through multiple convenient channels, including direct bank transfers to major banks like BDO and BPI, e-wallets such as GCash and Maya, and cash pick-up options via partner outlets. Repayment is equally streamlined, with automated reminders via SMS and the app, digital repayment channels, and cash-in options at partner merchants. All collection and recovery practices adhere to responsible guidelines set by the BSP and the National Privacy Commission (NPC).
Nationwide Reach and Customer Demographics
Cashalo’s digital platform ensures nationwide geographic coverage, serving customers across Metro Manila, Luzon, Visayas, and Mindanao. Its offline-to-online partnerships further extend its reach to provincial merchants, enhancing accessibility for rural populations. The company boasts an impressive eight million registered users, with a significant portion (70%) residing in rural and suburban areas. The primary demographic served falls within the 21 to 45 age bracket, indicating a strong appeal to young to middle-aged working individuals and entrepreneurs seeking flexible financial solutions.
Regulatory Compliance, Market Position, and Competitive Landscape
Operating within the regulated financial sector, Cashalo places a strong emphasis on compliance and maintaining a robust market position amidst a competitive digital lending environment.
Regulatory Framework and Consumer Protection
As a licensed consumer finance company (CA No. 1162) under the SEC, Cashalo operates within a clear regulatory framework. It is also regulated by the National Privacy Commission, ensuring strict compliance with the Data Privacy Act of the Philippines. Cashalo actively reports borrower data to the Credit Information Corporation, contributing to the nation’s credit reporting system. The company has also demonstrated responsiveness to regulatory scrutiny; following an NPC Fact-Finding Report in June 2021 regarding data privacy concerns, Cashalo promptly updated its mobile application to remove contact-list access, enhancing user privacy. To date, there have been no material enforcement or suspension actions by the BSP. Cashalo upholds consumer protection through transparent pricing, a full-disclosure policy, fair debt collection standards aligned with industry codes of ethics, and robust data privacy safeguards, including opt-in consent workflows.
Cashalo's Standing in the Philippine Digital Lending Market
Cashalo is recognized as one of the top three digital lenders in the unsecured micro-credit segment in the Philippines. It navigates a competitive landscape, with key rivals including Tala, Home Credit, Fint Q, and Tonik. Cashalo differentiates itself through several key factors: its focus on purpose-based products like the Lazada Loan and Buy Now, Pay Later options, a strong network of merchant partnerships for both online and offline distribution, and its proprietary credit models specifically designed to assess thin-file borrowers effectively. The acquisition by Empower Finance in 2024 and the US $75 million debt facility secured in 2025 underscore its strong growth trajectory and ambitions for product expansion and deeper market penetration, particularly in underserved rural areas.
Strategic Partnerships and Future Growth
The company’s growth is further supported by strategic partnerships across various sectors. Collaborations with major telecommunications providers like Globe and Smart facilitate data analytics and customer acquisition efforts. Partnerships with financial institutions such as DragonPay and other major banks streamline disbursement and collection processes. Furthermore, its extensive network of retail partners, including Robinsons, SM, Vans, and Puma, is crucial for the success of its Buy Now, Pay Later service and expands its brand presence across diverse consumer touchpoints.
Navigating Cashalo: Customer Experience and Practical Borrower Advice
Understanding the customer experience and offering sound advice are crucial for anyone considering a digital loan. Cashalo’s performance in these areas provides valuable insights for potential borrowers.
User Feedback: Praises and Points for Improvement
Customer reviews consistently highlight Cashalo’s strengths. Users frequently praise the speed of disbursement, the ease of use of the mobile application, and the convenience of its paperless application process. The high ratings on both the Google Play Store (4.6 stars) and Apple App Store (4.7 stars) reflect general satisfaction. However, some common complaints include occasional delays in fund release, which can sometimes extend from one to three days, and interest rates that may be perceived as higher compared to traditional bank loans—a common characteristic of unsecured digital micro-credit. Users also sometimes report minor app login issues during peak usage periods. Cashalo addresses customer concerns through in-app chat, email support, and a dedicated hotline, reporting an internal resolution rate of approximately 85% within 48 hours.
Success Stories and Financial Performance Overview
Cashalo’s impact is evident in various success stories, such as micro, small, and medium enterprise (MSME) owners financing inventory restocks, college students covering tuition fees via cash loans, and rural users gaining access to e-commerce through the Buy Now, Pay Later scheme. While specific revenue and profitability figures are not publicly disclosed, Empower Finance statements indicate Cashalo reached a breakeven point in the fourth quarter of 2024. The company’s outstanding loan portfolio is estimated at ₱4 billion (approximately US $70 million), with over five million loans disbursed to date. Its non-performing loan (NPL) ratio is estimated at around 6%, which is managed through a robust collections infrastructure and advanced credit analytics to mitigate risk.
Essential Advice for Potential Cashalo Borrowers
For individuals considering a loan from Cashalo or any digital lender, a thoughtful approach is recommended:
- Evaluate Your Needs: Clearly understand why you need the loan and if it aligns with your financial capacity to repay. Digital loans are best for short-term, urgent needs, or specific purchases.
- Understand All Terms: Carefully read and comprehend the interest rates, fees, and repayment schedules. Be aware of late payment penalties and other potential charges. Cashalo aims for transparency, but personal due diligence is always paramount.
- Compare Options: While Cashalo offers competitive rates and convenience, it is wise to compare its offerings with other available credit options in the Philippines, including traditional bank loans, if accessible to you.
- Verify Requirements: Ensure you meet all eligibility criteria and have the necessary documents prepared to expedite the application process.
- Borrow Responsibly: Only borrow what you can comfortably afford to repay. Over-indebtedness can lead to financial strain and negatively impact your credit standing.
- Review Feedback: While Cashalo has high ratings, paying attention to specific complaints from other users can help set realistic expectations regarding service speed or potential issues.
Cashalo provides a valuable service for many Filipinos seeking fast, accessible credit. By understanding its products, processes, and potential pitfalls, borrowers can make informed decisions to utilize its services responsibly and effectively.
