One of the country’s high-street banks, NBS, has said Small and Medium Enterprises (SMEs) remain one of the key drivers of economic development.
NBS Bank Chief Retail Banking Officer Victoria Chanza said this during a business clinic for SMEs from the Northern Region held in Mzuzu on Friday.
Chanza said most SMEs lack capital and accessing loans from a bank seems to be a tall order as they hold a perception that bank loans have high interests.
She said NBS Bank has special loans for SMEs which have affordable interests such as the Zayera Business Loan.
“On this loan, we are charging interest rate at nine percent and it is for both working capital and asset financing. This is how and what we are bringing to the market. So, we invite SMEs that are registered and have business plans to come.
“We are here to empower the SMEs that are operating in the Northen Region and also to thank them for the business that they have been giving the bank. Apart from that, we also wanted them to learn and unlearn from each as this is a clinic,” Chanza said.
Meanwhile, some customers of the bank have asked it to decentralise its loan approval processes to reduce the time it takes to approve applications.
Customer Sella Kafamveka, who sells clothes and accessories, said loan approvals often take two to three months, which defeats the idea of capital injection in a struggling business.
She further asked the bank to increase the loan ceiling for SMEs from the current K5 million.
“NBS has been there for us. They gave me a loan without collateral and my business is doing fine. I would only ask if the bank could improve on approvals of loans,” Kafamveka said.
