Does Grab analyse the full credit history of a borrower? The Grab site indicates: “You don’t need to submit documents to apply for the Upfront Cash programme.”
Does Grab know how many other credit cards or how much outstanding loans a borrower has – which he or she is counting on his earnings to pay off?
What sort of financial consultation about his rights and responsibilities does a Grab partner receive before Grab issues the cash advance?
What happens if the driver defaults? Is there a penalty? Would Grab charge new admin fees for extending the tenor of the cash advance?
Grab has said it would have a dedicated team to assist partners who fall short of their target incentive earnings and face problems in repayment but there are other scenarios that have not been addressed.
What if the Grab partner “quits” or can’t work anymore due to an accident or other unforeseen circumstances? Would Grab employ a debt collector if someone truly cannot pay off the cash advance balance?
How will Grab enforce a borrower paying off the account balance? Is there a loan forgiveness programme that a driver can apply for? My list of questions goes on.
The problem with Grab’s new programme is that it is currently framed as an upfront cash advance or an advance payroll scheme, which many firms in the US offer, but sounds a lot like a loan scheme.