The National Bank of Malawi has observed that a 17% default rate has been reported among its customers accessing the Taoloka Financial loans in Mzuzu.
This was revealed during an interaction session the bank held for its Mzuzu based clientele.
In an interview with MIJ Online, Oswin Kasunda National Bank director of retail banking observed that the default rate is worrisome considering that the loans being granted are not secured.
Meanwhile Alexander Sikwese chairperson of vendors in Mzuzu, while admitting of the existence of defaulters among his subjects urged the bank to simplify loan application procedure as well as consider reviewing upwards the loan limit which currently stands at 5 million kwacha.
This far, about 1.3 billion kwacha has been disbursed to over 400 vendors under Taoloka Finance loans, a National Bank of Malawi initiative which provides loans to urban market vendors in the country.
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