Service/Product Target

Personal, SME and corporate clients

Product Attributes/ Features

• No minimum balance required
• Use of a cheque book
• Access to an overdraft for qualifying customers

Service/Product Target

Individuals, whether adult or minor and corporate organisations or businesses

Product Attributes/ Features

• Minimum balance of MK5,000
• Interest paid once a year.
• Interest is at 3% per annum. Subject to review
• Allows for withdrawals through ATM, POS machine or withdrawal slip

Service/Product Target

Salaries or employed individuals or individuals who own a business

Product Attributes/ Features

• Minimum Balance MK1,000
• Interest rate at 1% per annum. Subject to review.

Service/Product Target

Students aged least 18 years

Product Attributes/ Features

• Minimum balance of MK500.
• Interest is at 2.5% per annum. Subject to review

Service/Product Definition

The Step-Up Professional product and service offering is a package designed to assist young professionals by making it easy for them to access tailor made products befitting their professional as well as lifestyle needs. A young professional is any person aged between 18 to 35 years who is employed in a profession or white-collar occupation.

Service/Product Target

• Step-Up Professional

To qualify a young professional must fulfil the following:

• Customer must be at least 18 years old but not be older than 35 years.
• Customer must have an academic qualification of at least Bachelor’s degree (Undergraduate) or equivalent professional qualification, diplomas and other certificate qualifications.
• Permanent and confirmed employment status
• Monthly net salary of not less than MK300,000 but not exceeding MK500,000.
• Well conducted account through which salary is being received. The account must be held for at least 6 months.
• Maximum monthly income/loan repayment ratio of 30%.
• New account holders to be exceptionally considered upon change of pay point and review of their bank statement from previous banker.

Product and Service Offering

The eligible young professionals shall have access to the following package:

• Transactional account
• Credit  Offering
• Digital Channel services
• Business management workshops

Product Attributes/ Features

The Package will have the following features and attributes:

Transactional Account (Current personal and Savings Account)

• Current Account personal
  
  • With monthly service fee of 50% of the premium Gold Account (being MK5,455.00 subject to changes in tariffs)
  • A designated Account Relationship Manager
  • Access to Visa Debit Card
  • This account will be upgraded to a Premium Gold account when monthly net salary reaches the MK500,000 threshold.
  • The account to be converted to the normal current account after 5 years or when account holder reaches 35 years, whichever comes first.
• Savings Account
  • A savings account with interest rates at 2% above the normal interest rate on savings accounts.
  • Minimum balance for Savings Account of MK10,000 and minimum saving period of 3 months.

Digital Channel services

• Ability to connect to both Mo626 Digital+ and BankNet360.
• Banknet360 with service fee at 50% of the normal fee of a personal account
• Normal E services bundle fees shall apply

Credit offering

The credit package will allow the young professionals to have access to funds that will assist them to finance their personal needs. The credit package will offer the following.

Educational Loan

• Maximum limit of MK3 million.
• The structure of the loan to be aligned with the program of study.

Professional subscription fees loans

• Maximum limit of MK0.5 million.
• Maximum repayment period six months
  • Furniture loan
    Maximum limit of MK2 million.
    Maximum repayment period of 2 years.
  • Vehicle loan
    Maximum limit of MK5 million
    Maximum repayment period of 3 years.
  • Rental Advance
    Maximum limit of MK0.6 million
    Maximum repayment period of 3 months

Maximum exposure per customer to be at MK5 million

Pricing

• Appraisal and arrangement fees as per applicable bank tariffs on personal loans

• Interest rate to be charged at Reference rate +8%

FINANCIAL MANAGEMENT AND WEALTH CREATION WORKSHOPS

• In order to promote quality leadership and sound financial management skills, the bank shall hold regular interactions with the young professionals through general customer interactions and in class workshops.

Service/Product Definition

The Young Entrepreneurs product and service offering is a package designed to assist young entrepreneurs with a means to access various financial products and services from the Bank. A young entrepreneur is any person carrying on business or intending to start a business falling within the age group of 21 to 35 years.

Service/Product Target

• Those with established businesses and,
• Those with only innovative ideas in need of start-up capital

To qualify a young entrepreneur must fulfil the following:

1. The customer must open/have a business account (Step UP Entrepreneur Account).
2. The business must be the main source of income.
3. Average monthly account turnover must not exceed MK8.4 million

Product and Service Offering

The eligible young entrepreneurs shall have access to the following package:

• Transactional account
• Credit Offering
• Business management workshops
• Digital Channel services

Product Attributes/ Features

1. Transactional Account

• Monthly service fee will be 50% of that of a normal SME account.
• Cheque book fee will be 50% of the normal tariff.
• BankNet360 at a monthly fee of 50% of normal fees
• Mo626 Digital+ at a monthly fee of 50% of normal fees

For qualifying customers, existing business accounts will be converted into the Step-Up Entrepreneur Account

2. Working Capital Finance

• Clean short-term loans to entrepreneurs with a limit of MK5 million.
• Maximum repayment period of 2Years.

3. Order/ Invoice based Financing.

• Access to order financing for orders of up to MK10, 000,000.00.

4. Guarantees & Bonds

• Unsecured bid bonds, Advance Payment bond and Performance Bond of up to MK5, 000,000.00 per customer per transaction.
• Maximum tenure of 90 days.

5. Credit Card.

• Limit of MK1,000,000 per customer only to cater for travel and e-payments requirements.
• Repayment ratio of 50%

Pricing

• Arrangement fees shall be 1% of the amount of the facility being availed.
• Appraisal and arrangement fees as per applicable SME bank’s tariff.
• Interest rate shall be 7.1% above the prevailing reference Rate.

Young Entrepreneurs with innovative ideas

• Innovative bankable business idea that is selected through an innovation symposium organized by the Bank.
• Winning ideas to access Start-up capital finance as part of the project development financing, upon meeting qualification criteria.
• All terms and conditions shall apply

Note: all the credit offering will be accessed by young entrepreneurs without requirement of any collateral

Service/Product Target

Children or persons under the age of 18

Product Attributes/ Features

• Minimum Balance of MK5,000
• Interest paid once a year.
• Interest is at 3% per annum. Subject to review
• Signatory is the guardian.

Service/Product Target

Clubs and individual farmers and estate owners.

Product Attributes/ Features

Minimum balance of MK200

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Service/Product Target

Personal and SME customers who wish to save money with the desire to accumulate wealth or finance an important event such as a weeding or vacation.

Product Attributes/ Features

• Minimum opening balance of MK20,000
• Monthly deposits of at least MK10,000 through a cash deposit or a standing order
• Interest rate at 6% above ordinary savings account

Service/Product Target

For all customers who would like to invest their funds for short term requirements.

Product Attributes/ Features

• Interest of 2.5% per annum on a 7 days Call Account and 2.25% per annum ona 30 days Call Account. Subject to review
• Minimum Balance is MWK 50,000
• Customer to always have a Malawi Kwacha account as the main account.

Service/Product Target

Kasupe Finance is a package designed to assist Village Banks in accessing financial products and services from the Bank. Village Banks eligible for this offering shall be those that have operated for at least one year and keep records of their financial transactions. These may be Village Banks operating as Trusts or Clubs and Societies.

Product and Service Offering

Transactional account

• Credit offering
• Business management workshops
• Access to digital channel services

The Amayi Angathe Product and Service Offering has three main categories. These are; a Savings Account, Credit Facility and an Information Web Portal with dedicated Account Relationship Managers. The attributes of this product and service offering are summarised below:

AMAYI ANGATHE BUSINESS SAVINGS ACCOUNT

Attributes

1. Minimum book balance of MK3,000.
2. Concessionary monthly service fee of MK200– No service fee to apply in the

first six months.

1. Free ATM card on account opening.
2. Free Mo626 plus ATM usage.
3. Discounted fee for salary payment through Electronic Funds Transfer (EFT). Transactions charge is 50% of the standard EFT charge.

What is it?

The Bank shall finance all eligible farmers in Malawi be it in the small- scale or Estate sub-sectors for the sole purpose of acquiring agricultural equipment and other farm implements which include the following: -

• Irrigation equipment
• Boreholes equipment
• Windmills
• Dams
• Water pumps
• Combine harvesters
• Generators
• Land Preparation equipment which include Tractors, Ridgers, Rippers, Harrows e.t.c
• Fencing
• Hammer mills
• Solar equipment for irrigation
• Silos
• Threshers
• Processing and oil extraction equipment
• Beef and Dairy equipment (value addition component to be cross sold to NBM Development Bank)
• Any other equipment related to agriculture and related activities.

Service/Product Target (Who Is The User In Mind)

Product Attributes/ Features: How Does The Product Work?

• Min – MK100,000
• Max – MK3,000,000, unsecured
• Repayment amount not to exceed 30% of salary
• Maximum repayment period of 36months
• To be covered under bancassurance for death and permanent disability
• Unsecured loan of up to MK3 million
• Can be topped up after paying 50%
• Second loan is accessible as long as repayment remains at 30% of net income
• Can be repaid before expiry at no cost

The Premium Gold Finance Scheme has been designed to assist customers in middle to junior managerial positions and owners of Small and medium Enterprises to fulfill their personal dreams and ambitions by providing them with top quality financial services in form of a gold VISA card, a gold cheque book, an  overdraft facility, personal loans occasionally when justified and a designated cashier at all National Bank of Malawi service centres. 

Service/Product target (who is the user in mind)

Salaried employees – middle and low income earners

Product Attributes/ Features: How does the product work

• 50% of net pay
• Available in multiples of K10,000
• Min – MK30,000
• Max – MK1,000,000
• Repayable on next pay day – within 30days.

Service/Product target (who is the user in mind)

Salaried employees & high net worth customers who want to buy property or improve existing property. (within city /town boundaries)

Product Attributes/ Features: How does the product work

• Max – Dependent on financial capacity of the customer and up to 85% of market value of the property offered as security
• Repayment amount not to exceed 35% of salary/income
• Customer to contribute 15% of the purchase price
• Maximum repayment period of 240 months

Service/Product Target (Who Is The User In Mind)

Business and salaried customers who want to purchase brand new/ second hand and reconditioned vehicles

Product Attributes/ Features: How Does The Product Work?

• Max - Dependant on financial capacity of the customer
• Maximum repayment period of 36 months for reconditioned and second hand, 48 months for brand new vehicles
• Second hand vehicles should be less than 5 years.
• Reconditioned vehicles should be less than 10years
• Accessible by NBM and non NBM customers.

Service/Product Target (Who Is The User In Mind)

Designed to assist high net worth corporate customers to avail their employees with loans via the Bank

Product Attributes/ Features: How Does The Product Work?

• Min – MK100,000
• Max – Determined by the employer and Bank
• Repayment amount not to exceed 30% of salary
• Maximum repayment period of 36months
• Employer to provide a guarantee
• Accessible by NBM and non NBM account holders because employer deducts loan repayments at source.
• Interest rate is lower than ordinary consumer loans
• Processing is faster
• Can be repaid before expiry at no cost

Service/ Product Target (Who is the user in mind)

Salaried and high net worth Customers who own property within city /town boundaries

Product Attributes/ Features: How Does The Product Work?

• Max - Dependent on financial capacity of the customer and up to 85% of market value of property offered as security
• Maximum repayment period of 60 months
• Repayment amount not to exceed 35% of salary/income
• Customers qualify for high amounts.
• Pricing is low with a minimum at RBM reference rate +6.1% pa

A Financial Lease, one of the facilities offered by the Retail Banking Division Division is a way of financing the purchase of the capital asset(s). The Bank, called the Lessor, retains the legal ownership of the asset throughout the tenure of the lease while the client, called the Lessee, has the economic ownership as they derive economic benefit through the usage of the asset.

In a Finance Lease, the legal ownership of the asset passes on to the lessee upon the successful completion of the lease.

What is it?

Insurance premium Finance is a specially designed facility that aims at assisting our customers with paying annual insurance premiums. The facility enables our customers (both retail and corporate clients) to pay their insurance premiums in instalments rather than in one lump sum amount.

How does it work?

The Bank pays insurance premiums to the insurance company on behalf of the customer and grants a loan to the customer which is repaid in monthly instalments.

What are key features of the product?

• The loan is payable in monthly instalments with the first instalment due at the inception of the policy.
• The product has a maximum tenor of 10 months and minimum of 8 months.
• The product covers premiums for commercial, auto, plant and machinery and other major insurance covers.

What is the benefit to the customer?

• The facility has a low interest rate
• The product allows the customer to spread the cost of insurance over the term of the loan.
• Insurance Premium Finance smoothens business cash flow by allowing payment of premiums in monthly affordable instalments.
• The security for the loan is the policy itself and its proceeds – No other security is required.

Interest:

Effective interest rate varies from 10% to 16.5% per annum depending on the tenor of the loan chosen and the prevailing reference rate.

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