Mercado Libre and another blow to the banks: will grant more than one million soft credits on its platform
The unicorn announced the arrival of this product in Mexico, after being successfully tested in Argentina and Brazil. Promise the best rate in the market
Faced with the problem of lack of access to credit, Mercado Libre announced that it will grant more than one million loans to buy within its platform without the need to use a credit card to Mexican users.
“The adoption we have in Mexico is positive, we believe it is better than that of Argentina and Brazil. The user experience will be better, Mexico is a huge country and the third in the Free Market region,” said Martín de los Santos, vice president of Mercado Crédito.
The executive added that these funding lines are currently up to 5,000 Mexican pesos (u$s260), although they could rise depending on the behavior of the applicant.
“This is only the beginning. As we move forward we will continue to incorporate more users to have access to credit,” said De los Santos a Expansión.
This new purchase option is already available in Brazil and Argentina, so they promise that in Mexico will have the same success.
“They will help 90% of the population that does not have a credit card. In Brazil, approval levels are very high,” the executive said.
According to the director of Market Credit users do not have a consumer financing so bringing a simple and transparent product has been positive.
Users must enter the Mercado Libre page, select the product of their interest, choose the payment method and choose the option ‘Credit Market’, then select the terms to pay ranging from three to twelve months.
The consumer loan promises that there will be no penalties or commissions. But if the user follows the line of payments, will be lowering the rate, which, at this time, is 21%. In case of delay, the collection team of the technology will communicate to refinance the loan.
“With this product we want to avoid a bad customer experience. We are not going to ask for extra information to grant credit for that issue,” explained Martin de los Santos to Expansión.
“Our rate is lower than the market, the product works without additional charge or commissions, the only thing we charge is the interest rate,” added Jonathan Garcia Samina, head of Market Credit Mexico.
At first users can use it in Mercado Libre to purchase products, however, with Mercado Pago you can finance consumption in a restaurant and you can even withdraw cash. This measure is already implemented in Argentina, so they hope to install it in Mexico when the product is further developed.
In terms of payment method, the user can make their own using a debit card or deposits in Oxxo stores.
Mercado Libre already granted loans to SMEs, benefiting since 2017 to 270,000 sellers, as data from the company ensures that 80% of small and medium enterprises have limited growth due to lack of funding.