Global consumer finance provider, Home Credit Philippines, and supermarket chain, Puregold Price Club, Inc., have unveiled their credit card offering, equipping sari-sari store owners to avail a credit card that they can use in building their businesses further.

“This co-branded credit card can be used by Aling Puring members for their investment to start or continue their sari-sari stores. They now have a credit card partner with Home Credit that they can use for all the goods that they need in the store, which is being provided by Puregold,” said Sheila Paul, the Chief Marketing Officer at Home Credit Philippines, at the signing ceremony of Home Credit and Puregold Price Club, Inc. Memorandum of Agreement on Monday in Quezon City.

Further, Paul said the partnership aims to teach sari-sari store owners credit management and the right way to build credit history.

Aling Puring members who would want to avail the Home Credit-Puregold credit card, powered by Visa, have a minimum credit limit of P20,000 up to P100,000; up to 45 days interest-free on purchases; Tap & Go for contactless payments, and Shop Anytime, Anywhere via the Home Credit App.

Suppose the sari-sari store credit card holder is unable to pay for the purchased goods within 45 days. In that case, a 3 percent interest rate is applied, in accordance with the regulation of the Bangko Sentral ng Pilipinas, said Zdenek Jankovsky, Chief Business Development Officer at Home Credit Philippines.

“And, like all other cards, customers have a choice. If they have a cutoff date, we will calculate the outstanding balance. Their payment date is 15 days after that billing date, and they can pay the full amount, or at least the minimum amount due, which is 7 percent of the outstanding balance,” he explained.

Jankovsky stressed that what sets Home Credit apart from other traditional banks that provide credit card services is their ability to provide financial services to the masses and to Filipinos who are typically unbanked and do not have access to formal lending.

Saving sari-sari stores from 5-6

Meanwhile, Puregold Vice President for Operations Antonio delos Santos said the credit card would save sari-sari store owners from loan sharks, colloquially known as 5-6.

He said most sari-sari store owners remain hesitant to venture into credit cards, as traditional owners are always on a cash basis.

“Typically, if they have a good credit rating, then that rating would eventually improve, just like other credit cards. When they pay on time, their credit history will improve. But Aling Puring members are taught to manage their finances well. This partnership would be very beneficial to our members and pursuing financial empowerment. We don’t want them to venture to Bumbay or 5-6 because the interest is high at 20 percent,” delos Santos explained.