Business women in Malawi are faced with a number of challenges that directly impact on the development of their businesses. Malawi’s population comprises 52% women and 48% men. Most of the women are self employed compared to those who are employed in the formal sector. Women have a low representation in the banking sector. Only 17% of Malawian women are currently banked and just a few women who own businesses have access to bank credit.
Most women entrepreneurs lack business management skills, don’t have proper collateral for loans and as such their businesses fail to grow. In June 2008 NBS Bank in collaboration with IFC, started a Gender Entrepreneurship Markets program focusing on making women in business bankable.
Women in business are faced with a number of issues that directly impact on the development of their businesses. These issues have been addressed in this Strategic Business Plan.
- Limited access to finance
- Risk Aversion
- Lack of collateral
- Low financial and business skills
- High cost of funds
- Acute shortages of foreign exchange and reduced trading margin
NBS Bank in conjunction with IFC trained women having objectives as follows;
- To improve women’s skills relating to business planning, financial planning, product marketing and financial management
- To increase women’s chances to access finance i.e exposing them to banking requirements and the whole essence of banker/customer relationship
- To enable entrepreneurs to offer better customer experience.
PRODUCTS AND SERVICES FOR WOMEN
In order to develop the women market further, NBS Bank has set up a section solely for women in business. The section has come up with products and services specifically for women.
DEPOSIT PRODUCTS
Chiperegano loan
- This is an investment deposit product for a group of 5 to 10 women contributing to one account.
- Targets women associations and groups who would like to raise funds for business
Features
- Minimum balance of K5,000
- No limit and withdrawals
- No service fee
- Competitive Interest accrued on monthly balance and capitalized bi annually
- Available in all branches
Benefits
- Opportunity to receive business training
- Access to chiperegano loans up to 150% of chiperegano deposit
- Easy and economical to form and maintain
- Acts as a networking forum
- Competitive interest rates
Personal Savings Plan
- Contract deposit account whereby women who want to raise a certain sum of money contribute a fixed amount monthly to this account until the targeted amount is reached
- Save for a wedding, holiday, tertiary education for kids, start up capital and retirement
Features
- The term depends on need and amount to be raised
- Competitive interest rate calculated on monthly balance and capitalized quarterly
- No service fee
- Minimum of 6 months and maximum of 5 years
- Available to all branches
Benefits
- Networking opportunities with other women
- Training opportunities
- Collateral for a SME loan
Business Savings Account
- This is a savings account for women in business. Its opened in a business name
Features
- Minimum of K10,000
- Interest calculated on monthly balance
- Competitive interest rate
Benefits
- Training opportunities
- Networking opportunities
- Access to SME loans
-
Current Account
Features
- Same as the generic current account
Benefits
- Training opportunities
- Networking opportunities
- Access to SME loans and overdrafts
CREDIT PRODUCTS
Chiperegano loan
- This is an investment deposit product for a group of 5 to 10 women contributing to one account.
- Targets women associations and groups who would like to raise funds for business
Features
- Minimum balance of K5,000
- No limit and withdrawals
- No service fee
- Competitive Interest accrued on monthly balance and capitalized bi annually
- Available in all branches
Benefits
- Opportunity to receive business training
- Access to chiperegano loans up to 150% of chiperegano deposit
- Easy and economical to form and maintain
- Acts as a networking forum
- Competitive interest rates
Order finance
- Credit facility that aims at supporting business with working capital to perform on orders
Features
- Target women that are in the business of obtaining and fulfilling orders to supply local or foreign
- Maximum of 6 months and extension may be considered
- Amount based on size of order and working capita
- Competitive interest rate
- Available in all branches
Customer benefits
- Opportunity to receive business training
- Opportunity to access working capital
Invoice discounting
This is a form of short-term borrowing that will be used to improve women businesses working capital and cash flow position.
Features
- It allows a business to draw money against its sales invoices before the buyer has actually paid
- The business drawdown 80% of outstanding sales invoices
- Use unpaid sales invoices as collateral for borrowing
Benefits
- Allows a business draw funds before the buyer pays
Real lady Insurance premium financing
- NBS Bank will provide premium financing for insurance cover which is generally an agreement between the Bank, the insurer and the insured.
- This financing involves the Bank paying insurance premiums to the insurers or brokers on behalf of customers.
- The customer will then be required to repay the loan on a monthly basis.
- This has the benefit of substantially reducing the cash flow burden on the customer since the repayments are spread over a period of time.
Features
- Short term facility (maximum of 10 months)
- Flat rate is applicable
- The facility will be cash covered i.e. 1st instalment is received in advance on both the 30th or 60th day payout.
Benefits
- This has the benefit of substantially reducing the cash flow burden on the customer since the repayments are spread over a period of time.
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