The Head of Cards and e-Banking William Kaunda making a presentation on the NBM Visa Credit Cards.

Recently, National Bank of Malawi (NBM) launched its NBM Credit Card, adding on the market some of its innovations in the banking sector. Our Reporter William Kumwembe caught up with NBM Head of Cards & e-Banking, William Kaunda, to explain more on the latest innovation from the bank. Excerpts;

You have just launched the NBM Credit Card, can you tell us more about this innovation from the bank?

The facts of life are that no matter how carefully you plan, every now and then you may have to make an unexpected payment. This is where a credit card becomes exceptionally handy. With a credit card, you are ready for anything — whether you need to get the car repaired, make a long trip to visit relatives or just want financial peace of mind.

A credit card can also help to take advantage of bargains and budget for bigger buys, such as a family holiday or new furniture. You can buy what you need, when you need it and spread the cost over several months.

An NBM Credit Card is issued by National Bank of Malawi to customers as an instrument for the payment of goods and services. It gives the customer an option to access money on credit and settle later for use Online, ATMs and Point of Sale Terminals (POS) which accept VISA branded cards worldwide. The credit line revolves every month i.e. credit is automatically renewed when a repayment is made.

Who is eligible to be given the NBM credit card?

The NBM Credit Card products have been designed to meet specific financial needs for ALL creditworthy customers of NBM. This means that for one has to be creditworthy for one to qualify which means that an assessment has to be done prior to one being offered the card.

Recognizing that our customers are from diverse areas of business operations, we segmented the cards into: Personal/Individual, Small and Medium Enterprises, and Corporates. Each area has its own suitable card and credit lines.

Within the Personal/Individual segment we have Classic Card, Gold Card and Platinum Card. This gives our customers a wide range of selection and status that they deserve for being our customers.

How will this card work?

An NBM Credit Card operates on an approved limit which is not attached to any of the customer’s operating accounts. This therefore means that the customer is not required to have the funds in the account during the use of the card. Sufficient funds are however expected to be in the account to cover the minimum repayment as agreed with the bank on the settlement date. This is important because if a payment is missed, late payment charges kicks in.

National Bank of Malawi's five different credit cards: Visa Credit card Classic, Visa Credit Card Gold, Visa Credit Card Gold, Visa Credit Card Business and Visa Credit  Card Corporate

What are the benefits of having an NBM Credit Card?

There are several benefits that accrue with the use of NBM credit card. First, the customer will practically borrow for free. The customer will be able to enjoy up to 45 days interest free period on all purchases. If no repayment is made during the interest free period then interest will be calculated from the date of purchase. Customers are therefore encouraged to honour settlement dates for a full enjoyment of the credit card.

Second, customers will enjoy online payments for goods and services. This means that our customers will be able to pay for virtually everything ranging from tuition fees to examining bodies to online order purchases.

Third, customers will have pre-approved Forex limits. This means that customers will be able to make quick personal and business trips without the need to visit our service centres for forex application.

Fourth, the card will give convenience as it is accepted worldwide on VISA branded service points.

Fifth, the use of the card will enhance record keeping especially for SMEs and corporates as credit card statements can help you track your expenses.

Sixth, the card provides protection & security having been designed to conform to the latest DDA chip & EMV technology and also being PIN protected – with a PIN required for every transaction.