Consumer Loans

Facility/Product and Purpose

  • Term Loan.
  • For  any legally accepted purposes.

Target Market

Salaried Account holders resident in Malawi including:

  • Non-Resident Malawians with Foreign Currency Denominated Accounts.
  • Foreign Nationals with Permanent Residence.
  • Professionals paid share of the firm's earnings monthly.

Repayment Period/ General Terms

  • Repayment - up to 36 months.
  • Can be extended to current, savings, deposits and special saver account holders provided accounts held for at least six months without a single dishonoured paper or unauthorized /excess overdraft.
  • No record of arrears in the past six months.
  • Accounts to record direct  regular salary /income  for at least 3 months
  • Credit life insurance arranged under Bancassurance Scheme.
  • If on contract maximum repayment period 2 months before expiry of contract.

Underwriting Requirements

  • Letter of Undertaking(LU) that is in line with the Bank's sample.
  • The LU must be from creditworthy employers whose overall profile especially financial standing and business continuity prospects are deemed fair risk. They should not be blacklisted for dishonoring prior LUs.
  • Undertake to send monthly earnings to applicant's Bank account until facility is repaid.
  • Be signed by authorised signatories and telephonically confirmed.
  • Confirm no similar undertaking made to other financial institutions.
  • Water/Electricity bills not more than 2 months old.
  • ADV 4 with full details of landed property, vehicles and other assets.
  • Copy of Employment contract if on contract.
  •  Repayment ability established/ascertained.

Maximum Amount/ Installments

  • Installment up to 30% of net pay
  • Risk grade score  below 30
  • Second loan while other one is running  only acceptable when 50% of  first one is repaid, if  both  will be within 30% of net pay and tangibly secured.

Security if required or LU not acceptable

  • Caution
  • Charge or Legal mortgage over property
  • Bill of sale over vehicle
  • Guarantee of Employer on form NBM SEC 15/15A
  • Treasury Bills
  • Cash
  • Credit Life insurance arranged under the Bancassurance Scheme.

Interest Rates, Fees and Charges

Reviewed at Bank's discretion but currently:
  • Cash secured -Base Rate
  • Near cash (e.g. Treasury Bills) - Base Rate Plus 2%
  • Tangibly secured (property, vehicle)- Base Rate plus 4%
  • Softly Secured (e.g. L/Us, Guarantees) -Base Rate plus 6%
  • Unsecured-  Base Rate  plus 8%
  • Arrangement fees plus Administration fees - charged  to customer as per standard charge booklet
  • Legal fees - As per standard legal charges

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