National Bank of Malawi (NBM) plc has introduced Kasupe Finance Account for village savings and loans (VSL) groups without service fee or collateral but with access to cheap credit facilities.
Speaking at the launch in Blantyre, the bank’s head of retail banking division Oswin Kasunda said the product aims to uplift socio-economic livelihood of Malawians.
He said: “Village banks have existed for a long time in Malawi but have operated on their own. We saw an opportunity to associate with them and fill the gaps that they face in their operations.
“This product is there to provide, among others, continuous flow of funds as and when the village banks need the money from the bank.”
The product has a transactional account, credit offering with an interest rate of 1.5 percent per month, business management workshops and free digital payment services.
On her part, VSL groups representative Angella Kachelenga hailed the bank for the product, saying it will provide VSL groups with access to finance and accounts where they can keep their money safe.
To celebrate the launch, the bank is running Agulu Lathu promotion where it is splashing K7 million to VSL groups who will open and maintain a minimum of K300 000 between May and July 28 2021.