Predatory and should be lowered.

This was labor NGO Center for Trade Union and Human Rights’ (CTUHR) response to a feature article published in weekly newsmagazine Nikkei Asia about the high interest of loans being made available by Grab Philippines to its workers.

According to a March 3, 2026 article titled “Grab charges Philippine bike riders over 230% interest for in-app loans” written by Michael Beltran, the ride-hailing and food delivery platform, currently the biggest in Southeast Asia, offers loans with very high interests to its motorcycle operators, or riders.

The article says that the loans, while handy for workers and are packaged as rewards for good work, ultimately reduce the workers’ income significantly and drive them to work more, as failing to pay the daily deduction results in not receiving bookings. This raises the question as to how workers who do not receive bookings are or will be able to pay.

“The loans with their interests may be legal and may even be convenient to workers. But it cannot be denied that workers’ incomes are being reduced and Grab, the employer, is earning from this. Grab should improve the state of the labor rights of its workers rather than collect more money from them,” said Kamz Deligente, CTUHR executive director.

The Nikkei Asia report cites the case of “John,” who borrowed P11,000 but paid a total of P14,294 through a daily deduction of P95.30 in 150 days. John said he used the money for repairs and tune-up for his bike.

A Fairwork Philippines 2025 report states that Grab is among platform companies that face deficiencies in ensuring that workers receive the minimum wage, providing protective equipment to workers, and respecting workers’ right to freedom of association. Platform companies are notorious for treating their workers as “partners” to deny an employer-employee relationship.

“The services offered by the gig economy are in demand. Rather than using its huge earnings to improve workers’ labor rights, however, Grab appears to be maximizing its profits by incentivizing excessive work and earning from high loan interests. Ironically, by not ensuring workers’ minimum wages, Grab is earning more from workers’ desire to earn more,” Deligente added.

In the article, Grab defended the loan arrangement. It also holds a monthly raffle for which only workers with a P13,000 loan are eligible. The loan can be repaid through a daily deduction of P62.07 for 360 days, or a total of P22,343.