GCB offers MSMEs unsecured loans up to GH¢1m
GCB Bank PLC has announced plans to deepen financial and technical support for micro, small and medium-sized enterprises (MSMEs), including unsecured loans of up one million Ghana cedis for eligible businesses to expand their operations.
The initiative forms part of the bank’s nationwide MSME Caravan Business Clinic, which seeks to address financing, management and operational challenges confronting small businesses and position GCB as a long-term growth partner for Ghanaian enterprises.
The Kumasi leg of the clinic, which followed its launch in Tamale, brought together business owners and entrepreneurs to discuss access to finance, business resilience, proper record-keeping and strategies for sustainable growth.
The caravan is expected to continue to Accra and Aflao as the bank takes the business support programme to other parts of the country.
Speaking at the event, the Head of SME at GCB Bank, Mr Gabriel Owusu Siaw, said the bank had introduced the SME Unsecured Business Loan to enable businesses without collateral or formal financial statements to access funding.
“We have introduced the SME Unsecured Business Loan, where MSMEs without collateral or formal financial statements can access funding up to one million Ghana cedis,” he said.
Mr Owusu Siaw explained that the bank would assess the creditworthiness of applicants largely based on their account activities and transactions with GCB.
He said GCB’s support for MSMEs went beyond financing, adding that the bank also provided training in business management, bookkeeping and other areas to help businesses improve their operations and reduce risks.
The Managing Partner at Blacksmith Africa Consulting, Dr Boatema Ntim, urged business owners to establish systems that would enable their enterprises to survive beyond their founders.
She said more than 90 per cent of local MSMEs were established primarily for survival rather than long-term or multi-generational growth.
Dr Ntim advised entrepreneurs to develop standard operating procedures, maintain accurate business records, separate personal finances from business accounts and adopt proper pricing systems to avoid cash-flow difficulties.
“Businesses must build structure so they are not entirely dependent on a single individual. Without proper systems, a business cannot survive the absence of its owner,” she said.
She further urged business owners to establish relationships with banks early and anticipate challenges such as foreign exchange fluctuations and competition.
The Head of Business Development and Ecosystems at GCB Bank, Mr Abdul Mugiss Ahmed, said MSMEs accounted for about 90 per cent of local enterprises, employed approximately 80 per cent of the workforce and generated nearly 70 per cent of Ghana’s Gross Domestic Product (GDP).
He said GCB was prepared to provide technical guidance and advisory support to businesses at various stages, from start-up through expansion and maturity.
The clinic also provided an opportunity for participants to raise concerns about the bank’s loan deduction procedures and difficulties in accessing financing for equipment needed to expand their businesses.
Bank officials assured the participants that their concerns would inform ongoing efforts to improve GCB’s services and strengthen support for the MSME sector.
FROM KINGSLEY E. HOPE, KUMASI
You can now read the *Ghanaian Times* and *The Spectator* newspapers digitally on [TimesNewsPlus](https://timesnewsplus.com/newspapers).
Follow our WhatsApp Channel now! https://whatsapp.com/channel/0029VbAjG7g3gvWajUAEX12Q
