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Grab loans explained: How to get a loan for the gig economy

Green Grab delivery bag and black helmet on a parked motorcycle in Singapore

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Table of Contents

Grab loans, having only surfaced in the market late last year, may be one of the options you consider when you are looking to take on a loan. The Grab platform, which started out providing ride-hailing services, has now evolved to undertake banking services since it obtained its first digital bank license in December 2020.

Now, the application offers a myriad of services, all in one place – from getting a ride, grocery delivery and now loans. But what is a Grab loan and how should we compare grab loans with other loans in the market? In this article, we outline the ABCs of what to look out for when you decide to apply Grab loans.

What is a Grab loan?

Grab loans are functions under Grab Financial Group, the financial services arm of Grab. The loans can be broadly placed under two categories: personal loans and business loans.

For personal loans, there is currently only one type available, which is offered by Grab in partnership with Citibank, known as the Citi Quick Cash. The loan has an interest of 3.99% or an effective interest rate of 7.50% per annum. An effective interest rate factors in other costs of taking up a loan, including administrative fees that a bank may charge depending on loan amount or loan tenure. The Citi Quick Cash, for example, has a maximum loan tenure of up to 60 months.

For business-related loans, there are more options to choose from, depending on your needs. They all have a maximum loan limit of S$100,000, with varying loan tenure and repayment terms. Be sure to survey each one before getting one to make sure you have the capacity to repay within the loan tenure as stated.

Convenience is perhaps one of the biggest plus points when considering a Grab loan. But how should one go about applying for a Grab loan?

How to apply for a grab loan

For personal loans, users can apply through the Grab app. Under “loans”, you can apply once you’ve verified that you are an existing Citi credit card customer. Grab also has an ongoing promotion currently, which promises up to S$500 worth of rebates if you take a certain amount in loans.

To calculate the interest rates and repayment plan, you may also visit the Grab website to find out more.

For business loans, this is currently only applicable to merchants under the Grab platform. They can similarly be applied via the Grab app, with approvals as quick as just a few days after you fill in a short questionnaire about your business needs. Most of these loans were made to help business owners with inventory needs, working capital as well as manage operating costs. Do get in touch with Grab to find out which loan best suits your needs and how much you may be allowed to borrow.

While low interest grab loans may be one of the more convenient options out there, it is important to calculate the costs that come with it carefully. Some loans come with administrative fees that need to be paid upfront or over time and may add up substantially without you realising.

Before applying for a loan, you should also compare grab loans with other loans available in the market. Find one that suits you best. Some important factors to consider are such as interest rate, ease of repayment, terms of repayment, loan tenure, and fees. Low interest grab loan is but one option – there are in fact many loans you could consider whatever your situation calls for.

In general, short-term lenders will typically loan your business no more than 10% to 15% of your company’s annual gross sales. Before taking on a loan, you should also have a plan on how you intend to repay the loan within a set amount of time to incur as little interest payments as possible.

For more inquiries on how to apply a grab loan, you may also visit the Grab website for more information or you can apply with us, Synergy credit, today.

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