NBM introduces pay day loan scheme
National Bank of Malawi (NBM), the biggest Malawi Stock Exchange (MSE)-listed bank in terms of assets, has introduced pay day loan to be availed to salaried employees who require short facilities.
NBM corporate affairs manager Anne Magola, in a statement, said the scheme will assist their customers with emergencies, travel, medical expenses, pay for utility bills and other luxuries.
“Since this will be a short-term loan, it will be unsecured. This loan product will provide a convenient platform for customers to access emergency and quick financial assistance from the bank.
“We believe through the pay day loan facility, the bank will build a long-term relationship and loyalty with its customers,” she said.
The pay day loan will be available to the bank’s customers whose regular monthly income is paid direct into an account maintained at the bank’s service centres spread across the country.
Magola said the facility is also being extended to customers who hold current, savings and special savers accounts and whose salaries have consistently been remitted to their bank accounts for the past six months.
“New account holders will also be eligible for the facility provided their applications are supported by a letter of undertaking from their employers to remit salaries to their accounts,” she said.
The pay day loan which will be offered in in K10 000 slots with K30 000 being the minimum amount a customer can get and K500 000 maximum, is designed to quicken the process and making it easy for the customers when they come to apply for the loan.
“The bundles will also indicate the redemption amount for the customer to know on the onset the amount that will be repaid at the expiry of the loan. Pay day loan will be repaid on the next pay day and customers will be allowed to borrow again immediately after settling the existing loan,” said Magola.
In the loan scheme, customers will be allowed to borrow up to 50 percent of their regular monthly income deposited into the bank account and will also have the choice of early redemption of the loan without any penalty.
Last week, the bank launched the Fiestasave Account, described as a game changer, in which customers can earn up to 20 percent per annum accruing on daily balances.
The account has no service fees and deposits can be made through slips, electronically, or by using MO626ice or internet banking service.
