ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Business

Aeon Financial offering tricycle loans in the Philippines

Financing by Japanese lender could help individuals escape poverty

TOKYO -- Aeon Financial Service began offering loans for buyers of motorized tricycles in the Philippines this month.

The Japanese lender is partnering with Global Mobility Service, a Japanese startup. They kicked off the service in central Manila, beginning with 40 tricycles. For this year, the duo plan to offer loans for up to 100 vehicles a month.

A special device with a GPS tracking system is attached to the tricycle when the borrower signs the contract. The vehicle's engine will stop if payments are late or if the device is pulled off of the vehicle. The tracking device will make it difficult for borrowers to flee without making payments.

Low-income people are often excluded from financial services because they lack regular jobs or a bank account. Such services targeting the poor are referred to as microfinancing. These tricycle loans could help individuals to pull themselves out of poverty by starting a taxi service, for example.

As soon as this fall, Aeon Financial Service will test the service in Indonesia, with plans to eventually expand it to Malaysia, Cambodia and Vietnam as well. The company also aims to provide loans for cars and agricultural machinery.

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media