Step Up Entrepreneur

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

  1. Working Capital Finance
  • Clean short-term loans to entrepreneurs with a limit of MK5 million.
  • Maximum repayment period of 2Years.
  1. Order/ Invoice based Financing.
  • Access to order financing for orders of up to MK10, 000,000.00.
  1. 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.
  1. 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

mission-vision

 Vision

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

Mission Statement

To provide the best financial services in Malawi and internationally, distinguished by outstanding service, product innovation and sustained earning.