MyBucks Banking Corporation has vowed to promote Small and Medium Enterprises (SME) in the country by giving them loans without collateral.
Speaking in an interview in Lilongwe, MyBucks Banking Corporation Marketing Director, Bernard Mkandawire said the main purpose of the bank is to work with SMEs so that they can improve their business.
“People get loans with collateral at other banks but at our bank, we have put measures, one of them is that if one does not have the collateral, they can mobilise other people and get the loan as a group.
He said another measure the bank uses is if one has a bank account with the bank and they have confirmed that he does not have an account elsewhere, he can get a loan without collateral.
Mkandawire added that the bank does this on an understanding that there are people out there who want loans but are unable to get them because they do not have collaterals.
He also said there are some banks that have a lot of restrictions for one to get a loan but said that was not the case with My Bucks Banking Corporation.
The bank’s Chief Executive Officer, Angela Shawa said their target and focus is on SMEs and micro businesses in the country.
“We have seen nations that have huge investments coming in but they have not grown because they did not develop the small business sector,” she said.
“What we have done with smaller borrowers for collateral is that they are set in groups .What they need is to make some deposit to get loan without security and all they need is to guarantee each other,” Shawa added.
She said the bank is finding ways to work with small and medium enterprises and trying to reduce the risk they face so that they grow with the bank. She stated that the bank believes that for Malawi to develop there is need to develop small businesses.
My Bucks Banking Corporation is a new bank that has been introduced. It was formerly called New Finance Bank.
The bank disburses K3 billion worth of loans every month which necessitates that it has to be connected with those that need loans and that borrowers also need documentation for them to get that money, according to the bank’s officials.