GCash boosts sustainable lending for MSMEs, farmers

In a nation where 99.5% of businesses are micro, small, and medium enterprises (MSMEs), GCash is driving sustainable and inclusive growth by providing fair access to lending and credit.

This initiative was a focal point at the 2nd Philippine Climate Forum, organized by the International Finance Corporation (IFC) in Makati City this June.

The forum aimed to accelerate green lending and climate investment opportunities while raising awareness of sustainability initiatives across various sectors. During the panel discussion titled “Promoting Green and Inclusive Growth in the Micro, Small, and Medium Enterprises (MSMEs) Sector in the Philippines,” Tony Isidro, President and CEO of Fuse Lending, highlighted the financial inclusion efforts of GCash.

“At GCash, we address these challenges by leveraging digital, data modeling, and AI technology to facilitate access to fair credit and pave the way for sustainable growth. More importantly, what that means is that it translates into a totally frictionless experience where eligible merchants can avail of a loan with zero documents, no waiting time. All they have to do is log in to the app, tap its services, and get access to credit and loans,” Isidro explained.

According to the Bangko Sentral ng Pilipinas, starting capital remains a significant barrier for MSMEs, with 57% of small businesses still relying on informal loans.

GCash’s Know-Your-Customer (KYC) and lending trust rating systems provide quick and accessible loans to aspiring business owners.

Entrepreneurs can borrow up to PHP 125,000 based on their GScore, with funds deposited directly into their GCash wallets, minimizing paperwork.

Beyond MSMEs, GCash also supports local farmers and fisherfolk. In partnership with Mayani and Farm Konekt, GCash offers non-collateralized loans and conducts financial literacy sessions to educate farming and fishing communities about climate investment opportunities.

The efforts of GCash and Fuse Lending were highlighted by key speakers at the forum, including leaders from the SME Finance Forum, Sustainable Finance and Banking Network (SFBN), and IFC.

The forum underscored the critical role of financial technology in driving sustainable economic growth and environmental sustainability in the Philippines.

GCash’s initiatives align with the country’s broader goals of achieving sustainable and inclusive economic growth.

By facilitating easier access to credit and supporting local industries, GCash is helping to build a more resilient and prosperous economy.