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Grab Financial Group (GFG) Malaysia and SEDANIA As Salam Capital Sdn Bhd (SASC) are partnering to offer Grab Cash Financing-i, a shariah-compliant financing product, to eligible Grab drivers and delivery partners.
Grab Cash Financing-i aims to provide its gig workers with convenient and secure access to financing. This financing option lowers the barriers to micro-financing which is typically inaccessible to those below a certain income level and lack a formal credit history.
This solution is made possible through SASC’s GoHalal Financing Programme (GHP), which ensures the financing activities and operations are compliant with Shariah principles and practices.
The GoHalal Financing Programme has key Shariah compliance tools to enable Shariah financing and among key features are Shariah Advisory Services by Afsha Shariah Advisory and As-Sidq Digital Trading Platform using Digital Commodities for real-time transaction and processing.
On growth opportunities in Islamic financing, Nisa added,
“As the world grapples with the economic impact of the pandemic, access to inclusive financing options in the gig economy remains limited. During this trying time, it is important for every Malaysian to be supported and have convenient access to financial assistance and services that will help them thrive and move forward. We are honoured to work alongside Grab Financial Group to offer the Grab Cash Financing-i programme to their driver and delivery-partners who have been serving as front liners during the pandemic.”
According to a survey which was conducted among Grab’s driver- and delivery-partners, 65% of them cited that a Shariah-compliant financing option was important to them.
Their main financing needs included emergency and personal expenses, current loan settlement and education for family members. When the programme was introduced in December 2021 to a limited number of eligible partners, they said it received encouraging responses.
“Since introducing the programme, we saw a take-up rate of 16% among eligible Grab drivers and delivery-partners. Grab Cash Financing-i is just one of GFG’s collaborative efforts with like-minded partners like SEDANIA to democratise financial services for everyday Malaysians. Our ecosystem, technology and data provide unique insights into our partners’ earnings and spendings, and subsequently their risk scorecard and payment capabilities. We can then customise products that cater to their financial needs,” said Sean Goh, Managing Director and Head of Grab Financial Group, Grab Malaysia.
Following what they described as an encouraging response, GFG is now piloting the Grab Cash Financing-i to a larger pool of eligible drivers and delivery-partners.
Eligible Grab gig workers will receive communications about the programme if they and automated payments will be made to their daily earnings. Only Grab gig workers who are earning above RM 800 monthly and below 75 years old are eligible to apply.