Most Malawian men do individually access financial loans from lending institutions comparing to women who have been blamed for spending their income on beauty and clothes, an official report has revealed.
A report by one of Credit Reference Bureaus (CRBs) in the country, Credit Data CRB Limited that coincided with 100 days of official credit bureau services in Malawi revealed that 65 percent of the country’s men do access financial loans individually.
Presented by Credit Data CRB Limited Director, Patricia Mwase in Blantyre, the report noted that only 35 percent of the country’s women have access to credit as individuals as most of them prefer to access credit in groups.
“All the obligations that we sampled were secured. Our conclusion therefore was that most females do not own property which they can use as security/collateral; anything to do with risk taking, culture etc other than security,” explained Mwase.
“Lack of tangible property registered by the females contributed to the low levels of access to credit in their individual capacities. We nevertheless noted that access to credit by women stood at 72% as members of groups or clubs that accessed credit. While the males access as members of groups stood at 28%.”
Mwase noted that most men prefer to access credit in their own capacities as they have tangible assets which they can pledge as security.
The report however revealed that most youths in the country do not have access to loans with the audience during the presentation blaming women for spending most of their income on their personal beauty and clothes.
The report showed that the youth access to credit was at 0.8 percent. The male gender youths access stood at 90 percent while the female youth stood at 10 percent.
The report further revealed that central region has highest number of people who access loans but most of them are defaulters.
“Our records depict that access to credit by region was Central Region-44%, Eastern Region-36%, Southern Region-15%, Northern Region-5%. Despite the north having low access it tops on recovery analysis with central region on lowest point,” added Mwase.
During the presentation, deputy Director of Private Sector Development in the Ministry of Industry, Trade and Tourism, George Mwase bemoaned the failure by some financial institutions in complying with Credit Reference Bureau Act which makes it mandatory for institutions to provide information including material changes on credit history of the bank’s borrowers and customers to CRBs.
The presented report also highlighted that only 45 percent of financial institutions thus including banks and insurance companies comply with the law in providing full information which can help a credit officers to make a proper analysis.
Reserve Bank of Malawi (RBM) charges a punitive penalty of K25 million on financial institutions for failing to submit information including material changes on credit history of the bank’s borrowers and customers to CRBs.Follow and Subscribe Nyasa TV :