Africa-Press – Malawi. One of the country’s high street banks, FDH, has launched a K1.36 billion loan facility to women entrepreneurs under the Market Women Activities and Initiatives (Mwai) affordable loans project.
The project aims to ease access to finances in the country. This follows the signing of a Memorandum of Understanding between the bank and Mwai in Blantyre Tuesday.
During the signing ceremony, it transpired that the affordable loans project is supported by an international organisation called Shared Interest, which will guarantee 70 percent of the loan repayment while the 30 percent will be guaranteed by the loan holders.
Mwai founder former president Joyce Banda said for some time women have struggled to access loans from commercial banks because they are considered risky customers. She touted the deal as a game changer in lifting women economically for their own development and the development of the country.
“Most of my fellow women did not go to school and the best route for transforming themselves is through business and they have decided on their own to do it and the significance of this deal is that access to finance has been made easy,” Banda said.
FDH Bank Managing Director Noel Nkulichi said the bank has always wanted to assist the marginalised people. He added that the loans are soft because the aim is to help women prosper in their businesses.
“The loan is guaranteed by Shared Interest; therefore, because of that guarantee the loans will be very soft to help women access them easily and grow their businesses,” Nkuluchi said.
A woman entrepreneur or a group of women can access a loan of up to K3 million to venture into any business. The facility is expected to run for five years.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk. He is however flexible as he also writes about current affairs and national issues.
For More News And Analysis About Malawi Follow Africa-Press
