GXS Bank, a virtual lender majority-owned by Grab in Singapore, has launched instant loans starting from SGD 200 (USD 149). The aim is to cater to gig workers and digital natives seeking flexible and accessible financial services. Borrowers can easily apply for loans through the GXS app, with repayment terms as short as two months. Early repayment fees are not incurred, allowing borrowers to pay back partially or in full at their convenience. Interest rates for the “GXS FlexiLoan” start from 3.8% per year, with the rate calculated daily based on the outstanding loan balance, while early repayment results in lower accumulated interest.
GXS, which is 60% owned by Grab and 40% by Singtel, was launched last year after it gained a full digital banking license from the Monetary Authority of Singapore. It began its banking business in August, offering savers 0.08% interest in its regular savings accounts and an additional 3.48% to its “saving pockets” accounts, a type of fixed deposit. It does not require a minimum balance or charge account maintenance fees. For now, the digital bank’s users are limited to Grab and Singtel customers, given its recent entry into the market. The MAS has set a ceiling of SGD 50 million (USD 37.2 million) for its aggregate deposits and SGD 75,000 (USD 55787) per individual as part of its license terms. The central bank will later remove the deposit cap.