Tonik teams up with EMCOR to offer appliance installment loans in Davao, Mindanao

Digital bank Tonik has partnered with appliance and electronics retailer EMCOR to offer installment financing to shoppers in Davao City and other parts of Mindanao, according to Edge Davao.

Under the arrangement, EMCOR customers can use Tonik's financing services to buy appliances and other household essentials in installments rather than paying the full price upfront. The companies said the deal is aimed at Filipinos with limited access to traditional banks, including those who cannot pay cash for household products or who turn to informal lenders.

EMCOR president and chief operating officer Nelson Aparejo said the partnership gives customers more affordable financing options as prices of goods and daily expenses keep rising. He said many families struggle to buy appliances and other necessities in cash. In an interview, he said Tonik offers the lowest rates among the retailer's financing partners, describing it as "the most affordable for our customers, especially those who are really in need of installment."

For Tonik, the agreement is a step toward expanding in the region. Addi Valdezco, the bank's head of retail partnerships, said EMCOR is Tonik's first retail partner based in Mindanao and called the deal the bank's "trigger to doing a full roll out for Mindanao."

Valdezco said EMCOR's wide store network across Mindanao and the Visayas made it a strong partner for bringing the bank's financing closer to local communities. He added that while Tonik's financing is open to everyone, the bank is particularly focused on underserved customers who are not reached by traditional banks or who borrow from informal lenders, offering them loans through a formal bank operating under Philippine banking regulations.