National Bank of 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.
National Bank of Malawi
National Bank of Malawi has more than 30 branches across the country, and offers a maximum lending rate is 24.9%. The specific interest rate applicable to individual borrowers depends on each customers’ risk profile and the type of the lending product. The Bank has many products whose full details can be obtained here. The bank has SME targeted facilities and in August 2019 it launched a facility for women entrepreneurs.
Lady Entrepreneur Facility
This product specifically targets women entrepreneurs, offering them a window to access loans up to MK5,000,000.00 without collateral. The window was created following requests from clients most of whom said were failing to access funds due to lack of collateral. The product encompasses a savings account package, credit bundle package and exclusive web portal content.
SME Business Finance
To assist qualifying Small and Medium Enterprises (SMEs) with working capital, capital expenditure finance, short term loans, letters of credit, guarantees and bonds. Target market includes both sole proprietorships and limited companies that have sales turnover of up to K 100, 000,000 running or intend to run any business which is not on the bank's negative list.
Revolving Credit Facility
Corporate clients can apply for revolving credit facility, which once in place can be used to acquire assets on presentation of invoice. The facility is subject to annual review.
Terms and conditions
o Any asset of durable and identifiable nature; this includes equipment, plant, machinery, commercial vehicles, tractors, business cars, generators, computers etc.
o If a business is properly established and registered (sole traders, professional partnerships and companies), one can qualify for asset finance provided the business can demonstrate the ability to generate cash to meet rental payments.
o Repayments are flexible and are tailored to suit the cash flow pattern of the business. It could be monthly, quarterly or on a seasonal basis over an agreed time frame.
o Normally, no other collateral other than the asset that is financed constitutes security
Contact information
National Bank of Malawi
Henderson Street
P.O.Box 945, Blantyre
Tel: +265(0)1820622 or +265(0)1820606
Email: chiefexec@natbankmw.com
Web: www.natbank.co.mw