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Institution
Data approved: 2012-12-04
Data version: 2
Age of data: 145 months
Key Statistics
| Outstanding portfolio (MWK) | MWK 926,536 |
| Portfolio (USD) | USD 2,375.73 |
| Active Clients with Loans | 139 |
| Approximate % Female Clients | 80% - 100% |
| Approximate % Urban Clients | 80% - 100% |
Methodology
| Individual | |
| Solidarity group | |
| Village banking | x |
| Self help group | |
| Other | |
Description
Business loans are small loans learnt to poor communities meant for small scale businesses. The loans taken to add capital to existing businesses or start a new business.
Loan Purpose
| Any purpose | |
| Income generation | x |
| Mortgage/housing | |
| Consumer loan | |
| Agriculture | |
| Education | |
| Other household finance | |
| Other | Can only be used for working capital |
| Other (2) | |
Included Services
| Credit education | |
| Group meetings | |
| Credit insurance | |
| Workplace visits | |
| Business training | x |
| Other training | |
| Other | |
| Other (2) | |
| No other services | |
Eligibility
| Men | x |
| Women | x |
| Must run a business | |
| Must own a home or land | |
| Must be a salaried worker | |
| Must be specific age group | |
| Other | Must be a member of the Malawi Homeless People's Federation. |
| Other (2) | |
Portfolio Size by Product
Geographic Coverage
| # Regions for this institution | 17 |
| # Regions for this product | 2 |
| Regions Active | Lilongwe, Chikwawa |
Loan Conditions
Loan Amount
| Currency | MWK |
| Minimum loan size | MWK 10,000 |
| Maximum loan size | 10,000 |
Distribution at Disbursement (Est.)
| Loans less than MWK 50,000 | 100% |
| MWK 50,000-150,000 | 0 |
| MWK 150,000-250,000 | 0 |
| MWK 250,000-350,000 | 0 |
| MWK 350,000-450,000 | 0 |
| Greater than MWK 450,000 | 0 |
Loan Term and Grace Period
| Shortest loan term | 6.0 months |
| Longest loan term | 6.0 months |
| Approx average | 6.0 months |
Distribution at Disbursement (Est.)
| Loans 3 months or less | 0 |
| Between 4 and 6 months | 100% |
| Between 7 and 9 months | 0 |
| Between 10 and 12 months | 0 |
| Between 13 and 18 months | 0 |
| Longer than 18 months | 0 |
Grace Period
| Grace period usage | 0 |
| Average grace period | 0 |
Repayment Frequency
| Daily | |
| Weekly | |
| Every 2 weeks | |
| Every 4 weeks | |
| Monthly | x |
| Every 2 months | |
| Quarterly | |
| Every 6 months | |
| Every 12 months | |
| Single end payment | |
| Irregular payments | |
Pricing Information
Interest
| Lowest quoted nominal interest | 2.00% |
| Highest quoted nominal interest | 2.00% |
| Interest rate period | Monthly |
| Interest Rate Calculation Method | Decl Bal |
| Subsidized by funder request? | No |
| Is rate fixed for entire loan term | Yes |
Upfront Fees
This product has no upfront feesOngoing Fees
This product has no ongoing feesUpfront Insurance Fees
This product has no upfront insurance feesOngoing Insurance Fees
This product has no ongoing insurance fees
Compulsory Deposit
| Required for | All |
| Criteria | N/A |
| Is deposit indicated on the repayment schedule? | No |
| Do borrowers control deposit in their group? | No |
Deposit BEFORE or AT Disbursement
| % loan amount deposited | 10.00% |
| or, Fixed-amount deposited | 0 |
Deposits DURING period payments
| % loan amount deposited | 0 |
| or, Fixed-amount deposited | 0 |
| Conditions on access to deposit | Access During |
Interest Paid on Deposit
| Minimum interest rate paid | 0 |
| Maximum interest rate paid | 0 |
| Interest payment frequency | N/A |
Taxes
| Are taxes charged on this product? | No |
Additional Comments
Client pays 10% cash deposit on the day they sign a loan contract. This cash is repaid to the client on the loan disbursement day.
Full Pricing Data
Business Loan samples
| Sample 1 | | Sample 2 | | Sample 3 |
|---|
| Loan Amount | MWK 10,000 | | MWK 10,000 | | MWK 10,000 |
| Loan Cycle (1, 2, 3, etc) | Not Known | | Not Known | | Not Known |
| Disbursement Date | 2012-04-01 | | 2012-03-01 | | 2012-03-01 |
| Loan Term (Months) | 6.0 months | | 6.0 months | | 6.0 months |
| Grace Period (Months) | -1.0 months | | -1.0 months | | -1.0 months |
| Total Cost of Credit | MWK 451.38 | | MWK 451.38 | | MWK 451.38 |
| True Price by Comp | | | | | |
| Interest price component | 16.8% | | 16.8% | | 16.8% |
| Fee Component | 0.0% | | 0.0% | | 0.0% |
| Insurance Component | 0.0% | | 0.0% | | 0.0% |
| Tax Component | 0.0% | | 0.0% | | 0.0% |
| Deposit Component | 0.0% | | 0.0% | | 0.0% |
| Full APR (int fee ins tax dep) | 16.8% | | 16.8% | | 16.8% |
| Transparency Index | 100 | | 100 | | 100 |
| | | | | | |
| Original Repayment Schedule | PDF | | PDF | | PDF |
| MFT Pricing Calculation | PDF | | PDF | | PDF |
Business Loan Price Graphs
