Lazada's Loan Services: What You Need To Know

Lazada, one of the biggest online shopping platforms in Southeast Asia, offers a short-term lending program called Lazada Loans. The Lazada Loan is a buy now, pay later payment option that allows shoppers to finance their purchases. The loan application process is digital, with an approval lead time of up to 24 hours. There are multiple loan providers to choose from, each with its own advantages, such as low-interest rates, quick turnaround times, and high borrowing limits. The repayment options are also convenient, with multiple methods available.

Lazada Loan application process

Lazada offers loans to customers in the Philippines through its partnership with Cashalo. The Lazada Loan application process is outlined below:

Step 1: Register for a Cashalo Account

Use the same mobile number and email address enrolled in your Lazada account when registering for a Cashalo account.

Step 2: Download the Cashalo App and Log In

Download the Cashalo app by clicking the link sent to you via SMS. Log in to the app using your newly created Cashalo account credentials.

Step 3: Complete Your User Profile

Provide the necessary information, such as your name, address, and other contact details, to complete your user profile on the Cashalo app. Ensure that the mobile number and email address match the information in your Lazada account.

Step 4: Select Lazada Loan and Choose Loan Amount and Payment Terms

Under the "Pay with Cashalo" option, select the Lazada Loan and complete the application process. Choose your desired loan amount and payment terms, which can be up to 90 days.

Step 5: Receive the Loan Amount in Your Lazada Wallet

Once your loan application is approved, the loan amount will be sent to your Lazada Wallet in 1-3 business days. Ensure that your Lazada Wallet is activated to successfully receive the loan amount.

It is important to note that you will need to provide valid identification and proof of income when applying for the Lazada Loan. Additionally, Lazada Loans are offered through accredited lenders, and you will make payments directly to the lender using various payment methods, including GCash, bank transfer, and over-the-counter options.

Lazada Wallet activation

Lazada offers loans to customers in the Philippines through its Lazada Wallet feature. The Lazada Wallet is linked to a customer's Lazada account and can be used to make purchases on the platform with one-click payments.

To activate your Lazada Wallet, follow these steps:

• Download the Lazada App: Ensure you have the Lazada mobile app installed on your device. It is available for download on both iOS (via the App Store) and Android (via the Google Play Store).
• Register or Log In: If you do not already have a Lazada account, you will need to register by providing your email address, phone number, and any other required details. If you already have an account, simply log in using your existing credentials.
• Access the Wallet: Tap on the "Account" icon located at the bottom right corner of the app. Then, in the Account section, find and select "Lazada Wallet."
• Activate Wallet: You will see an option to activate your Lazada Wallet by tapping on "Activate Now."
• Verify Your Identity: Provide additional information, such as your full name and date of birth. You may also need to submit a government-issued ID. Follow the on-screen instructions to complete the verification process.
• Set a PIN: For security, you will be prompted to create a 6-digit PIN. This PIN will be used to authorise payments and manage your wallet. You can also enable two-factor authentication (2FA) for added security.
• Verify Your Mobile Number: Enter your mobile number, and you will receive a verification code via SMS. Enter this code into the corresponding field and click on the "Verify Mobile Number" icon to complete the process.

Once your Lazada Wallet is activated, you can apply for a Lazada Loan through the Cashalo app. With the loan, you can shop on Lazada and pay later, with the loan amount being sent directly to your Lazada Wallet.

Lazada Loan lenders

Lazada Loans provide shoppers with an alternative way to pay for their online shopping. Lazada partners with accredited mobile lenders to make this feature possible. A Lazada Loan allows shoppers to buy now and pay later with easy installment plans minus the credit card requirement. The money loaned will be deposited into the shopper's Lazada Wallet, which can be used to pay for items on the Lazada platform.

There are a variety of lenders on Lazada, each with its own advantages, registration process, monthly terms, and rules. Lenders are thoroughly vetted by Lazada, so you have the assurance that you won’t be scammed. Some Lazada lender partners offer 0% interest for first-time loaners, with interest rates of 2% to 4% for succeeding loans. The minimum loanable amount across lenders is ₱500, while the maximum loanable amount is ₱50,000.

• TendoPay: TendoPay offers a quick turnaround time of 24 hours. The interest rate is relatively low at 2%, but some borrowers point out that this lender requires a 20% down payment.
• UnaCash: You can borrow up to ₱50,000 with UnaCash, making it a good option for buying big-ticket items. However, the payment terms are quite short, ranging from two to six months.
• Cashalo: With Cashalo, you can apply for a Lazada Loan and receive your loan amount through your Lazada wallet. The loan will be sent to your Lazada wallet in 1-3 business days.

Lazada Loan repayment

Lazada Loans in the Philippines are a Buy Now, Pay Later service, meaning that repayment will be in monthly instalments. The proceeds of the loan will be credited to your Lazada Wallet, which you will need to activate, and you can then use this to purchase anything on the platform.

Lazada Wallet credits from a Lazada Loan do not expire, so you can shop whenever you like, or save them for a bigger purchase. You can also top up your wallet or apply for a second loan. The loan agreement is exclusive between you and your chosen lender, so you will make repayments directly to the lender. Most lenders have payment channels, including bank-to-bank transfers and bill payment centres.

You can also make repayments via GCash, Maya Pay, and other supported payment channels. Early repayment is allowed without penalties, and you will receive reminders for upcoming payments to avoid late fees.

It's important to be aware that a Lazada Loan is still a loan and can lead to financial problems if you are not responsible. Combine big discounts with a high credit limit and impulsive shopping habits, and you may accumulate overwhelming debts. You must also watch out for processing fees and penalties. Factor in these costs when you're working out your repayments.

Lazada Loan interest rates

Lazada offers loans to its customers through its partner lenders. The loan amount is sent directly to the customer's Lazada Wallet and can be used to purchase items on the Lazada platform. The loan partners have different terms and conditions, interest rates, and monthly terms.

Lazada Loan partners that offer low-interest rates include LazPayLater, which offers an interest rate of 0% for up to 45 days, with an option to avail of an instalment plan of up to 12 months. However, this is only available to pre-qualified users. Cashalo also offers 0% interest on Lazada Loans for new users, with quick processing times and loan proceeds disbursed as soon as possible.

Other Lazada Loan partners include JuanHand, which is convenient as the application process is easy and approvals are quick, but it has a relatively high-interest rate. TendoPay is another option, with a quick turnaround time of 24 hours. BillEase also offers a convenient and quick approval process, but some features are limited to first-time borrowers, such as the 12- and 24-month loan terms, which are only available to repeat customers.

It is important to note that while Lazada Loans can be convenient, they can also lead to financial problems if not managed responsibly. Interest rates, processing fees, and penalties should all be considered when computing repayments.

Frequently asked questions