The Reserve Bank of Malawi (RBM) will next week host various credit awareness programmes in an attempt to raise awareness on effective credit management.
The period is dubbed Credit Awareness Week.
Among other things, RBM will work with stakeholders in disseminating information on merits of accessing and borrowing money from licensed institutions including banks, microfinance institutions and savings and credit cooperatives.
This is coming at a time informal credit and lending groups are becoming popular in the country.
“People should know the importance of understating credit terms and conditions such as interest rate, repayment period, short term or long term loan and consequences of default before signing a credit agreement between a lending institution and a borrower.
“They should also know benefits of accessing and using credit history reports from credit reference bureaus for informed financial decision making and tips on how borrowers can avoid falling into credit traps or non-performing loans, and realize the most from personal, household and business credit,” reads the release in part.