Is Touch ‘n Go’s GOpinjam Worth It Compared To Their Competitors?
On 1 April 2022, Touch ‘n Go launched GOpinjam, a digital personal loan service that’s available through the Touch ‘n Go eWallet. But what exactly is GOpinjam? How does it work? Well those are the questions that we’ll look to answer in this article.
So let’s get started.
What is GOpinjam?
So first before we can compare GOpinjam with other financing options, let’s take a closer look at the official product description in Touch n’ Go’s FAQ:
“GOpinjam is a service made available by TNG Digital Sdn Bhd to customers for electronic access and application for personal loan via the GOpinjam icon in the TNG eWallet mobile app.”
So to put it simply, GOpinjam allows users to access and apply for personal loans using the TNG eWallet mobile app.
One important distinction to be made is that GOpinjam does not offer personal loans themselves, but through GOpinjam, customers can apply for various loans from regulated financial institutions.
For now, Touch ‘n Go is collaborating with CIMB bank to provide the CIMB e-Zi Tunai loan through GOpinjam’s service.
Now that we understand what GOpinjam is, let’s have a look at their key features.
|Loan amount||RM100 - RM10000|
|Loan tenure||1 week - 12 months|
|Interest rate||18% p.a - 36% p.a|
Now let’s discuss the key features of GOpinjam, starting with the most eye-catching feature of this service; the interest rates.
As you can see above, the interest rate can go up to a whopping 36%, which may scare off potential customers.
However, Touch ‘n Go has clarified the situation, saying that the interest rate offered depends on several factors, such as credit history and the tenure of the loan.
But does this make the interest rates of GOpinjam worth it?
Here’s a table comparing GOpinjam to other options to better illustrate the picture for you.
|Type of financing solution||Interest rates offered|
|GOpinjam||18% p.a - 36% p.a|
|Credit cards||15% p.a - 18% p.a|
|Personal loans||2.31% p.a - 18% p.a|
As you can see from the table, even the lowest possible interest rate from GOpinjam is equal to the upper end from competing products, which makes GOpinjam a much less attractive financing solution option than its competitors.
To help you better understand just how impactful the 36% interest rate can be, here’s an example of just how much you’d be paying back;
|Loan amount||Loan tenure||Interest rate||Monthly repayments|
|RM10,000||12 months (maximum)||36% p.a (maximum possible)||RM980.52|
This table shows that with the 36% p.a interest rate, you’ll be paying RM980.52 per month, which totals up to RM11,766.19 in 12 payments. This means that you’ll be paying RM1,766.19 in interest alone.
Now let’s look at the eligibility requirements for GOpinjam.
The eligibility requirements are as follows;
- Malaysian citizen
- Age between 21 and 63
- Have a minimum income of RM800 monthly
As you can see, GOpinjam’s eligibility requirements are very lenient, which means that the product is an option that is available for almost every Malaysian.
The minimum income needed for you to be eligible for GOpinjam is RM800, which makes it one of the lowest, if not the lowest minimum monthly income requirements for any financing facility.
In comparison, the lowest minimum monthly income requirement is for Bank Rakyat Personal Financing-i Public Sector, at RM1000, which is still higher than GOpinjam’s monthly minimum income requirement.
Now if we’re looking for a clear advantage that GOpinjam offers, then the loan amount offered might be one of the best out there in terms of variety.
As mentioned in the table above, GOpinjam offers loan amounts as low as RM100 to as high as RM10,000 which means that there is a suitable loan amount for almost everyone who needs it.
The thing that separates GOpinjam from a lot of their competitors is the fact that it offers loans that can go as low as RM100, which makes it a very attractive option for people who are looking for a quick, but not that substantial financing solution.
Another advantage that sets apart GOpinjam from the competition is the loan tenure that they offer.
As you can see from the table above, it offers a loan tenure that starts from one week to 12 months, which means that for creditors who are looking for a short term loan, GOpinjam represents a very attractive option, because of the short term loan tenure they offer.
The short tenure also softens the blow for the high interest rates, as you won’t end up in multi-year loan tenure.
Combined with the small loan amounts that GOpinjam offers, it’s a very attractive option for people who are looking for small credit solutions in a very short period, as so far GOpinjam is the only financing solution that offers loans like this.
What we like
- Short loan tenure – GOpinjam is the only financing option that offers loan tenures as short as one week, which makes it the only viable option for people who are looking for ultra short term loans.
- Varied loan amounts – Starting at as low as RM100, GOpinjam is one of the very few financing options available that offers a very low amount, which makes it one of the only options available for micro financing solution.
Things to consider
- High interest rates – For GOpinjam, there is really one huge thing that you need to consider, which is its very high interest rates. As shown in the table above, the interest rates start at 18% p.a and can go as high as 36% p.a, which makes it one of the, if not the highest interest rates offered from a financing solution.
- Impossible to track – Another factor that you might want to consider as well is the fact that GOpinjam makes it very hard for you to track your previous loans. According to GOpinjam’s FAQ page, it only tracks the current active loan, which means you can’t check the past loans that you’ve borrowed.
All in all, GOpinjam has a lot of very attractive features that they can boast of, but is held back by one major drawback.
Boasting varied loan amounts, short term loan tenures, and ease of application, GOpinjam gets so many things right. However, potential customers should think twice before making an application, due to the exorbitant interest rates.
GOpinjam might represent a very attractive option if you’re looking for micro financing solutions, however you should still be wary of the very high interest rates. If you want to have a look at other financing options, why not have a look at our personal loans list right here.