15th September 2026 - 3 min read
GXBank is aiming to lend up to RM448 million (US$110 million) to micro, small, and medium enterprises (MSMEs), including businesses with limited collateral or banking history, after signing a deal with the International Finance Corporation (IFC).
GXBank announced the risk-sharing partnership on 14 September 2026. IFC, which is part of the World Bank Group, works with private companies and financial institutions in developing countries. Under the agreement, IFC will cover up to RM20.2 million (US$4.95 million) of GXBank’s losses if eligible small business borrowers can’t repay their loans.
When a bank lends money to a business, some borrowers won’t repay. This risk is higher for smaller businesses with little financial or credit history, or those without assets to use as collateral.
If eligible MSME borrowers default on their loans, IFC will cover GXBank’s first losses, up to RM20.2 million (US$4.95 million). The money isn’t paid to GXBank upfront. IFC only pays out if those losses happen.
GXBank says this is the first time a Malaysian digital bank has received this type of IFC guarantee.
According to GXBank, 15,000 MSMEs have opened digital accounts with the bank, and more than 5,000 loan drawdowns have been made so far. A drawdown is when a business takes out money from the loan or credit limit it has been approved for.
GXBank also works with CGC Digital, the digital arm of Credit Guarantee Corporation Malaysia (CGC), which guarantees part of eligible business loans so banks take on less risk. The guarantee is offered when you apply in the GXBank app, so you don’t need to apply to CGC separately. Since March, GXBank has approved RM27 million in CGC-guaranteed loans.
GXBank has also completed a trial with Malaysian fintech startup Finory to sign up micro traders automatically using business licences issued by local authorities. GXBank hasn’t said when, or if, this will be offered to the public.
GX Biz FlexiLoan is GXBank’s business loan, and it’s a credit line. Once you’re approved for a limit, you can make a drawdown whenever you need cash, and you’re currently only charged interest on the money you take out. Each drawdown is repaid in monthly instalments over 2 to 84 months, and there’s no fee for paying it off early. You don’t need collateral or a guarantor.
GXBank’s product disclosure sheet uses an example interest rate of 10% a year, or 14.6% a year for a loan backed by a CGC guarantee, which includes a 4.6% guarantee fee. These rates are only examples, and the rate you get depends on GXBank’s assessment.
If your business has struggled to qualify for financing because it lacks collateral or a long banking history, GXBank is now better protected when lending to businesses like yours, but your application still isn’t guaranteed to be approved.
The IFC guarantee covers GXBank’s losses, not your debt. If your business can’t repay its loan, it still owes the outstanding amount, and sole proprietors are personally responsible for it.
Late or missed payments will show up in your Central Credit Reference Information System (CCRIS) record, which every bank checks when you apply for a loan or credit card.
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As a creative content writer, Eloise has covered finance, business, lifestyle topics, and even moonlights as a singer-songwriter outside of RinggitPlus. Her current interests are learning the best ways to optimise spending and credit card hacks to gain more airline miles.
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