Understanding Paloo Financing Inc (Cashalo) in the Philippines
Paloo Financing Inc, widely known by its digital credit platform Cashalo, has established itself as a significant player in the Philippine financial technology landscape since its inception on January 18, 2018. Operating as a stock corporation, Paloo Financing Inc holds the Securities and Exchange Commission (SEC) Registration No. CSC201800209 and Certificate of Authority No. 1162, underscoring its legitimate and regulated status within the country. Its legal address is located at U3207 32/F Robinsons Equitable Tower ADB, Second District, Pasig, Metro Manila 1109, Philippines.
This digital lender is a subsidiary of US-based fintech Empower Finance, Inc., which completed its acquisition of Cashalo in April 2024. This strategic move aims to integrate Southeast Asian lending operations under Empower's innovative alternative underwriting model, signifying a robust backing and a global perspective for Cashalo's growth. The company's leadership includes Luke Stidham as President, overseeing strategic growth and product expansion, and Warren Hogarth, Co-founder and Chief Executive Officer of Empower Finance, providing overall corporate leadership and driving cross-border integration.
Cashalo’s core mission is to provide unsecured, app-based loans to a broad spectrum of Filipinos, including salaried individuals, micro-entrepreneurs, and e-commerce shoppers, thereby addressing the financial needs of the underserved population. Its operations are not only licensed by the SEC but also regulated by the National Privacy Commission and the Bangko Sentral ng Pilipinas in its digital lending activities, ensuring compliance with local financial regulations and data protection standards.
Loan Products, Rates, and Terms: What Paloo Financing Inc Offers
Paloo Financing Inc, through its Cashalo platform, offers streamlined and accessible loan products designed to meet various short-term financial needs. The primary offerings include the Cash Loan and the Lazada Loan. The Cash Loan is a versatile personal loan product, allowing individuals to borrow amounts ranging from a minimum of ₱1,000 (approximately USD 18) up to a maximum of ₱25,000 (approximately USD 450) directly through the mobile application. The Lazada Loan, on the other hand, provides point-of-sale credit specifically for topping up a Lazada Wallet, facilitating online shopping with similar loan amounts.
Regarding financial terms, Cashalo emphasizes transparency. The maximum Annual Percentage Rate (APR) applied to its loans is 36% per annum for a 12-month equivalent term. The effective daily interest is calculated as the principal amount multiplied by the annual rate, divided by 365, and then multiplied by the loan term length. For instance, a ₱10,000 loan with a 36% APR over a 61-day term would result in a total payment of approximately ₱10,601.64. Loan terms are flexible, ranging from a minimum of 61 days to a maximum of 180 days, allowing borrowers to choose a repayment schedule that suits their financial capacity.
A key differentiator for Cashalo is its fee structure. The company proudly states that it requires no collateral, advance fees, or "deductions" from the principal amount. This means borrowers receive the full loan amount they apply for, without any upfront reductions. Furthermore, there are no origination or processing fees beyond the stated interest rate. While specific percentages for late payment penalties are not publicly detailed, Cashalo adheres to the caps set by the SEC, ensuring that any penalties for overdue accounts remain within regulatory limits. The unsecured nature of these loans means no collateral, co-signers, or traditional bank references are required, significantly lowering the barrier to access for many Filipinos.
Applying for a Cashalo Loan: Process, Requirements, and Technology
The application process for a Cashalo loan is designed for convenience and speed, primarily leveraging its mobile-first platform. Borrowers can access loan services through the "Cashalo" mobile app, available for both iOS on the App Store and Android on Google Play. A complementary website, www.cashalo.com, also provides product details, frequently asked questions, and support portals. Customer service is available via call center and email during business hours.
To apply, individuals typically need one valid government identification for verification. Cashalo employs an automatic Know Your Customer (KYC) verification process during app registration. This process, with explicit user consent, may access device data such as contacts and location, which is then utilized in their proprietary credit scoring model. Importantly, Cashalo contributes to building a stronger financial ecosystem by reporting digital credit information to the Philippine Credit Information Corporation (CIC), helping borrowers establish a credit history.
The company's credit scoring and underwriting rely on a sophisticated, data-driven risk model. This model utilizes device, behavioral, and alternative financial data, processed by machine-learning algorithms, to assess real-time cash flow and payment behavior. This allows for quick and accurate loan decisions, often resulting in instant approvals. Once approved, loan disbursements are efficient and flexible, with options for direct bank transfers to any Philippine bank account or transfers to popular e-wallets like GCash and PayMaya. Instant mobile money payouts are also available through partner channels.
The Cashalo mobile app itself is highly rated, boasting 4.6 stars on the App Store based on user reviews as of 2025. Its features include instant loan approval notifications, flexible repayment scheduling tools, payment tracking, and an in-app customer support chat, enhancing the overall user experience. For collection and recovery, Cashalo uses automated reminders via SMS and in-app notifications, followed by call center follow-ups for delinquent accounts. In cases of uncollected accounts, escalation to third-party collection agencies occurs within SEC guidelines, ensuring adherence to regulatory practices.
Paloo Financing Inc's Market Position and Borrower Experience
Paloo Financing Inc, through Cashalo, has carved out a significant niche in the highly competitive Philippine digital lending market. It currently holds a top-three position among app-based lenders, competing closely with established names like Tala Philippines and Home Credit Philippines, as well as newer entrants such as Maya Loan. Cashalo's success stems from its ability to offer fast approvals and maintain low entry barriers, effectively capturing a substantial share of underserved borrowers across the nation, including those in urban and remote rural communities.
The company differentiates itself through several key aspects. Its integration with e-commerce, notably through the Lazada Loan, provides a unique offering for online shoppers. Furthermore, its advanced alternative underwriting model, which analyzes transactional and behavioral data, allows for a more inclusive assessment of creditworthiness beyond traditional metrics. The commitment to a "zero hidden fees" policy and instant payouts also contributes to its appeal among borrowers seeking transparent and immediate financial solutions.
Customer reviews and ratings provide valuable insights into the borrower experience. The Cashalo app enjoys a strong 4.6-star rating on the App Store, with users frequently praising the speed of loan approvals and the clarity of charges. However, some common complaints include aggressive call-center follow-ups for overdue accounts and limited flexibility for term restructuring, even when borrowers express willingness to pay penalties. While customer service offers in-app chat support and a dedicated call center available from 6 AM to 10 PM (Smart: 0918 930 9800; Globe: 0917 116 3636), these concerns highlight areas for potential improvement in customer relations.
Despite these challenges, Cashalo has facilitated over five million loans to date, empowering micro-entrepreneurs to expand their small businesses and enabling individuals to manage financial emergencies rapidly. The company secured a US$75 million loan facility in June 2025 from Community Investment Management (CIM) to further scale its products and deepen credit penetration, especially in rural areas. Planned expansions include rolling out micro-Small and Medium Enterprise (SME) lending and insurance products by 2026, signaling ambitious growth trajectory and a commitment to broader financial inclusion.
Important Considerations and Practical Advice for Borrowers
For potential borrowers considering a loan from Paloo Financing Inc (Cashalo), understanding its regulatory framework and exercising financial prudence are paramount. As a regulated entity, Cashalo operates under the oversight of the SEC, the National Privacy Commission, and the Bangko Sentral ng Pilipinas. This ensures a degree of consumer protection, including transparent pricing with capped APRs and mandatory pre-loan disclosure statements. In 2021, the National Privacy Commission conducted a data privacy investigation, which, while not resulting in a ban, prompted Cashalo to enhance its privacy measures by removing intrusive permissions, reinforcing its commitment to data security.
When considering any digital loan, it is crucial to borrow responsibly. While Cashalo offers quick access to funds, borrowers should carefully assess their repayment capacity. The maximum APR of 36%, though within regulatory limits, represents a significant cost over time, especially if the loan is not repaid promptly. Ensure you fully understand the loan term (61 to 180 days) and how late payment penalties might apply. Always budget thoroughly before applying to ensure that loan repayments can be comfortably met without undue financial strain.
Potential borrowers should also be aware of the data-driven nature of Cashalo's underwriting. While this enables quick approvals, it involves providing consent for the app to access certain device data. Reviewing and understanding the privacy policy is essential before granting these permissions. Moreover, the reporting of credit information to the Philippine Credit Information Corporation means that timely payments can help build a positive credit history, while defaults can negatively impact future borrowing capacity.
In case of any issues or concerns, borrowers have avenues for grievance redress. Cashalo provides in-app chat support and call center services. Should these internal channels not resolve an issue, consumers can escalate their concerns to the SEC’s Financial Consumer Protection Department or through the National Privacy Commission for data privacy-related matters. By staying informed, borrowing within one's means, and understanding the terms and conditions, Filipinos can leverage digital lending platforms like Cashalo responsibly to meet their financial needs.
