National Bank of Malawi Plc (NBM) has applauded vendors for performing extremely well in Taoloka Finance loan repayment surpassing other special customer segments.
NBM’s Head of Retail Banking Oswin Kasunda said this during the Bank’s interaction with vendors in Blantyre on Thursday.
According to Kasunda, the vendors are conducting their accounts well and are able to pay back the loans, saying the Bank has so far only experienced a five-percent default rate.
“Credit is about risk, in the banking business there is always a risk so if you give out loans you don’t expect to have a 100 percent repayment rate as of now the default rate is about five percent which is very good and acceptable.”
“Now that the performance is satisfactory as far as the Bank is concerned, it is time we consider extending the package to other towns. We have already received inquiries from Mangochi, Kasungu, Mchinji and others so we will now consider going out of the four cities,” said Kasunda.
Tiyanjane Juma from Limbe Flea Market said when the product was launched in August last year she was in doubt, but now the Taoloka Finance loan has helped boost her business.
“After following all the instructions, the Bank gave me a loan and I can testify my business is no longer the same,” said Juma.
NBM launched the Taoloka Finance product last year, in the country’s four cities of Blantyre, Lilongwe, Mzuzu and Zomba to help vendors have access to financial services through the Bank.