The e-wallet app seeks to provide more Filipino biz owners with easy access to capital through pre-approved, fast-cash loan offering
GCash, the #1 finance super app in the Philippines, has granted loans to millions of Filipinos, 35% of which are business owners who want to expand their business, as of the first quarter of 2023.
A total of PHP 50 billion worth of loans has been disbursed through GCash’s borrowing solutions as of the end of 2022, as the finance super app works to ensure that more Filipinos, including aspiring entrepreneurs, get easy access to fair loans.
Micro, small and medium-sized enterprises (MSMEs) are regarded as the backbone of the Philippine economy, yet the majority of them have difficulty in funding their business. A survey by software firm Mambu in 2022 has found that 67% of MSME respondents globally have struggled to secure sufficient funding over the last five years.
MSMEs seek access to funding
As the lack of starting capital remains as one of the top three biggest barriers for MSMEs, business owners are looking to borrow money to boost their capital and sustain their business. Through GLoan, GCash’s pre-approved, fast-cash loan powered by Fuse Lending, business owners can borrow up to PHP 125,000, which is deposited straight to their GCash wallet.
“We are behind every Filipino who wants to start or grow their business to secure their family’s future. Nobody should have to put their dreams on hold because they do not have the financial capacity,” says Zo Canaria, Head of Growth Marketing at FUSE Lending Inc. “It is our hope that more Filipinos will be able to reach their dreams faster and we aim to do that by making loans fast, affordable and secure for everyone.”
Filipino MSME owners find loan application processes of banks difficult due to the need for collateral and supporting documents. As a consequence, most rely on lending companies and informal lenders to get immediate access to money despite the high interest and risky transactions.
GLoan aims to bridge this gap in funding access by reducing the time and effort it takes to process a loan. All GLoan applications can be accomplished within the GCash app without the need to submit additional documents or physical visits. While traditional loan applications take multiple days or months, GLoan borrowers can get their loan in as fast as 24 hours after application.
“We recognize that time is a valuable resource for businesses and we want entrepreneurs to be able to use that in growing their business instead of dealing with additional paperwork and bureaucratic practices,” Canaria added.
Still, Bangko Sentral ng Pilipinas notes that several business owners express hesitance and discomfort in borrowing money. “We hope to reduce the misconception that borrowing money is always an added burden,” shares Canaria. “Through GLoan, we enable consumers to set their loan amount according to their needs and means through a transparent and fair process, so they don’t have to resort to informal lenders who charge exorbitant interest rates,” Business owners who want to borrow via GLoan can borrow anywhere from P1,000 to a maximum of P125,000, depending on their GCash transaction history, with an interest rate of as low as low as 1.59%. This can then be paid for as low as P265 a month for 5-24 months.
Leveling the playing field for PH biz owners
As an all-in-one financial app, GCash is helping Filipino businesses thrive by offering a convenient way of paying, supporting money transfers and enabling consumers to keep and access savings. With its borrowing solutions, GCash hopes to level the playing field and provide equal opportunities for every Filipino who wants to pursue entrepreneurship, including women and the unbanked.
2 out of 3 GCash borrowers are women, and loan opportunities such as GLoan can help them open opportunities for further education and upskilling, create sustainable livelihoods and empower their business decision-making process. A survey by the Asian Development Bank found women-owned MSMEs are at a disadvantage when it comes to accessing capital, with 58% facing lack of access to funding, compared to 37% of male-owned MSMEs.
Moreover, 64% of those who borrowed from GCash are from C2DE or lower socio-economic classes. These include Filipinos who are unbanked, do not meet minimum salary requirements and do not have collateral, credit history and sufficient IDs, which formal financial institutions usually require during loan applications.
As of this year, GCash has also provided livelihood to 1.5 million informal sellers, which include ambulant vendors. Should they aim to scale up and pursue a physical store, GCash aims to help these business owners get access to MSME loans.
“Having access to fair loans is a means for Filipinos to start anew, jumpstart their dreams and expand their resources to secure their future. Breaking barriers when it comes to accessing fair and transparent loans is our way of actualizing our goal of finance for all,” Canaria concludes.
To be eligible for GLoan, users must have a fully verified GCash profile, must continue using GCash and its services, regularly cash in and pay their dues early or on time.
Access GLoan through your GCash dashboard or find it under “Borrow.” No GCash yet? Download the GCash App on the Apple App Store, Google Play Store, or Huawei App Gallery! Kaya mo, i-GCash mo!
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