Lending is currently on hold until FundKo's crowdfunding license application is approved by the SEC. Join the waitlist to get early access to the new FundKo platform when lending resumes.

Make a difference in your community

Lend money. Directly benefit the causes you care about. With FundKo, you can help others get access to education, healthcare, or break out of debt.

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Helping Others Through Lending

We want to help borrowers create a better life for themselves. Our loans are grouped according to use, such as for education, medical, disaster relief. The loan type determines base interest rates and are meant to balance social good with a healthy rate of return.

For example, we believe everyone should have access to education. With distance learning becoming more prevalent due to COVID-19, not all Filipinos have the funds to buy a laptop for their children. Laptop loans are designed specifically to help these families. The interest rates are lower than for personal loans, since increased education directly impacts social good.

Understanding Credit Risk

Investments are inherently risky. Some loans may default, and you may lose principal on some of your loans. This is called credit risk. Riskier borrowers are more likely to default than less risky borrowers. Lenders are compensated for greater credit risk with higher interest rates.

Higher interest rates thus offset the greater chance of loan defaults. With proper diversification, you should have an overall positive return on your loan portfolio. FundKo ensures that no single investment is greater than 5% of your total account value. However, it is up to you to diversify across different loan products.

Improving Lending Outcomes with Behavioral Science

With so many unbanked people in the Philippines, traditional credit models do not work for the majority of borrowers. As an alternative lender, FundKo is using behavioral science to influence lending outcomes. With this approach we create financial incentives that “nudge” borrowers towards positive outcomes. For example, we recommend that borrowers take smaller, specific loans so they can build a reputation on the platform. With every new loan, they have opportunity to lower interest rates and higher principal. We also offer discounts for more frequent payments. The goal is to provide an incentive to develop a habit of repaying the loan. Overall, we expect that behavioral nudges will steer borrowers towards responsible borrowing, which in turn lowers the risks for lenders.

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