Employer Guaranteed 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.
    .

     

Facility/Product and Purpose

  • Employer Guaranteed Loans
  • For  any legally accepted purposes.

Target Market

  • Employees of  guaranteeing organization
  • Beneficiaries do not need to be Bank customers
  • Availed to credit worthy and reputable Corporates whose overall risk profile has been analysed and vetted to the Bank's satisfaction.

Repayment Period

  • Up to 30 months

Maximum Installment Amount

  • As determined by the Bank and agreed to by the Employer
  • To be deducted at source and remitted to the Bank on monthly basis by employer.

Security

  • Employer's guarantee on form NBM SEC 15/15A
  • Supported by Board Resolution in line with Legal status of the guarantor

Interest Rates, Fees and Charges

  • Minimum of Base plus 2% but in line with pricing of other facilities enjoyed by the employer.
  • Arrangement fees charged as per standard charges booklet

Underwriting Requirements

  • Application submitted by Employer and application made to CMD through ADV 36 or ADV 10  as in business application hence apply  Business applications check list.
  • The Employer not the Beneficiaries (employees) can    negotiate for the facility.
  • Full Risk analysis since strength is on guarantee and guarantor has to be worth it.

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