The Philippines’ Tonik digital bank enters SME lending

Tonik Digital Bank (Tonik), the Philippines’ first digital-only neobank, leveled up its Big Loan catering to a wider range of financial needs for small businesses in the Philippines.

As the first digital bank in the country to offer a secured loan product, Tonik’s Big Loan offers entrepreneurs up to PHP 5m with flexible, tailored repayment options, competitive interest rates, and a streamlined application process that elevate the lending experience of small and medium enterprises (SMEs).

Tonik also provides personalized, end-to-end support through a dedicated team of experts available to assist borrowers throughout the lending process.

As micro, small, and medium enterprises (MSMEs) make up 99.58% of all businesses in the Philippines, 67% of which face credit constraints — Tonik’s Big Loan expands Filipino SMEs’ access to larger amounts with the flexibility and convenience they need to take their businesses to scale.

“By providing SMEs with accessible and flexible financing through the Big Loan, we are not just extending credit; we are unlocking opportunities. At Tonik, we focus our energies into ensuring that every Filipino entrepreneur, regardless of the size of their business, is empowered with the necessary tools and resources they need to thrive to turn their dreams to reality,” said Greg Krasnov, Founder and CEO of Tonik Digital Bank.

The digital lending market in the Philippines is seen to grow by 45.4 percent to reach $488.8 million in 2023 and is expected to ring up to $1.68 billion by 2027 — led by digital banking service providers such as neobanks and fintech firms.

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