Corporate Banking

Construction Loans

These are term loans of specific amounts, for construction purposes. Such loans are for a stated period of time normally exceeding 2 years but not more than 7 years.
Interest is calculated at an agreed rate on the full loan amount or the principal outstanding amount.

How will my business benefit?

  • Draw down is at various stages against the production of Architect's certificates, Engineers/Quantity Surveyors certificates or similar documentation.
  • Such loans are available to property development companies and building construction companies. Security required is the asset being financed or an alternative asset.
  • Repayments of the outstanding loan will not normally commence until the projects are completed.
  • A moratorium is agreed depending on the anticipated completion period.

Prospective Customers

  • Development companies.
  • Property development companies.
  • Well established building construction companies. 

Foreign Currency Loans

Foreign Currency Loans 

These loans are available to our exporting customers to enable them purchase produce or crops like tobacco, rice, cotton, pigeon peas etc., locally and for export.
Loans are available against firm orders or against inward Letters of Credit as the case may be. 

How will my business benefit?

You borrow locally in US Dollars, Sterling or Rand, and convert the currency to Kwacha to enable you purchase the commodities locally.
After export, customers receive US Dollars, Sterling or Rand as the case may be, and repay loans at agreed instalments in the foreign currency that they borrowed.

How much will it cost?

Exporting customers have the benefit of enjoying much lower interest rates than the Kwacha denominated borrowing interest rates. Customers also have a hedge against devaluation as they borrow in foreign currency, receive Forex for their exports and repay Forex to the bank.

Prospective Customers

Exporting customers with Dollars, Rand or Sterling receivables that export against firm orders, or Letters of Credit. 

Medium Term Loans

Term loans are available to enable corporate customers purchase assets whilst matching finance costs to cash flow produced by the investment.
Medium term loans are designed to help our customers with items of capital in nature such as improvements to their premises, factories and/or purchasing of equipment and processing machinery.

How will my business benefit?

  • Term loans are useful if you can predict the likely revenue streams from the investment and want to match finance costs to revenue or simply if you want to spread the cost of your investment over a period of time so as to avoid unnecessary strain on your cash flow.
  • Term loans, are for a specified fixed period with agreed  repayment schedules over an agreed period normally not exceeding 6 years.

How much will it cost?

For medium term loans, interest is calculated at an agreed rate over the full amount of the loan or the outstanding amount whichever is the case.
Interest so charged will be debited to your operating account.

Prospective Customers

All corporate customers who require purchasing of capital items or who want to improve their premises, factories etc.
.

Short Term Loans

Short-term working capital loans provide fixed lump sums with an agreed repayment period of up to 2 years.
Such loans are repaid on a monthly or quarterly basis as agreed between the bank and the customer.
Interest is calculated at an agreed rate on the full loan amount or the principal outstanding.

How will my business benefit?

With a short term loan, separate loan account will be opened for your business and the loan funds are transferred to your operating current account.
Repayments can be made on a regular basis without affecting the cash flow of your business operations.

Prospective Customers

All corporate customers with short term financing needs e.g. bulk purchase of raw materials, purchase of produce for export, payment for imports etc. 

Syndicated Loans

Reserve Bank of Malawi has set guidelines with regard to credit concentration and group or individual companies' exposure. This means that the Bank cannot lend money beyond a certain limit. In such cases NBM is capable of securing funds by involving other Banks either locally or internationally. Each bank commits to contribute a proportion of the loan under the terms of a single loan agreement between the lending syndicate and the borrower.
 
The syndicate lenders will agree on the pricing that normally includes Commitment and Arrangement fees.
This facility can be negotiated through our Corporate Banking Office based in Head Office, in Blantyre and satellite office in Lilongwe.

How will my business benefit?

  • This facility provides our customers wishing to embark on large investment projects, the flexibility of borrowing from or more different Banks of good repute.
  • This enables our corporate clients to borrow large amounts, which are not affected by credit concentration or capital adequacy constraints of the Bank.
  • Interest is charged at very competitive rates, normally at base plus a margin. The margin depends on the amount, security offered and the benefits derived from the relationship and the project.

Prospective Customers

Large corporate customers, multinationals, international companies wishing to expand in Malawi.

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mission-vision

 Vision

To be the most successful financial institution in Malawi with an internationally visible presence.

Mission Statement

To provide outstanding and inclusive financial solutions that deliver sustained stakeholder value.