FINCA Malawi - Malawi
- Malawi
- Resources
- Access to Finance
- Access to Capital
- Access to Capital
Access to capital for women entrepreneurs in Malawi
Formal financial access in Malawi is very limited. Over half the population remains excluded. Consequently, financial service use is largely informal and lack of proximity to financial services is the key barrier to inclusion in Malawi. Financial inclusion is important for women because it helps them make payments reliably, access credit which can be invested in their enterprises, and to save. Financial inclusion has been seen to improve access to insurance products and services which are critical safeguards against risks in any type of business.
FINCA Malawi
FINCA Limited is a subsidiary of FINCA Impact Finance (FIF), and part of a network of 20 international microfinance institutions and banks that provide socially responsible financial services worldwide to enable low-income individuals and communities to invest in their future. FINCA Limited started its operations in Malawi in 1994.
Financial Products
FINCA Malawi has three main loan products and these are:
Village Banking Loan
This is a credit facility accessible to a group of people actively owning individual businesses but organised in groups ranging from 10 people to a maximum of 35 people. It facilitates business performance and growth. Specific loan features include:
o Flexible repayment period tailored according to the borrowers’ capacity and or desire typically over a period of 6 to 10 months
o No need for a business license, collateral or security requirements to obtain the loan
o The loan can be accessed for several cycles as long as the client repays well and the loans to individuals in the group range from as low as MWK20,000 to a maximum of MWK1,000,000
Terms and conditions
To qualify, one must meet the following conditions:
- Individual borrowers must have active businesses
- Applicant must be above 18 years but below 70 years.
- There must be group solidarity
- At least 3 months of business existence and 6 months living in the community.
Business Loan
This is a short-to-medium term credit facility that is specially designed to finance various business operations. In addition to facilitating business performance and growth, the other advantages of the Business Loan include:
o Flexible loan term repayment plans
o Loan amounts dependent on business performance hence light burden on the client
o Competitive interest rate just like the Village Banking Loan.
Qualification requirements are:
- Individuals or companies with active businesses
- Applicant must be 18 years and above
- At least 6 months of business existence and activity
- Possession of a business license
The credit facility ranges from MWK200,000 to MWK10,000,000 with flexible repayment terms and periods of 6 to 24 Months and flexible collateral requirements.
Small Enterprise Loan
This is a medium to long term credit facility specially tailored for business growth for entrepreneurs interested in growing their businesses. Its features include;
o Quick loan access for capital injection
o Flexible loan term repayment plans; loan amount is dependent on business performance hence light burden on clients
o Competitive interest rate and processing fee
o No cash collateral required to access loan.
Loan amounts start from above MK10,000,000
o Repayment periods range between 12 and 24 months with flexible collateral requirements
Contact information
FINCA Malawi
Plot No. BW 199 – 202, Henderson Street
Private Bag 382, Chichiri, Blantyre 3
Tel: +265 (0) 1824 544
Email: customersupport@fincamalawi.org
Web: www.finca.mw