Lilongwe, Malawi Enterprise Development Fund (MEDEF) has said it is currently making reforms in its operations to increase the number of people that access its loans and also to enhance efficient loan re-payment system.
Chief Operations Officer for MEDEF, Dingiswayo Jere, made these remarks in an interview with Malawi News Agency (Mana) on Monday at its head office in Lilongwe.
One of the major changes is that we are now operation as a commercial company, not as a government institution. We have also registered with the Reserve Bank of Malawi as a non-deposit taking and money lending institution to promote business in Malawi, Jere said.
He said that the Malawi Rural Development Fund (MARDEF) changed to MEDEF in order to allow the institution serve all Malawians, unlike in the past when it targeted the rural masses only.
People in the rural areas cooperate well in settling their loans. We hope clients from the urban area will also cooperate, he explained.
MEDEF which has 15 branches in all the 193 constituencies and offers loans at an interest rate of four percent achieved 98 percent loan settlement in the 2016/2017 financial year according to Jere.
There is flexibility in collateral obligations to allow the underprivileged access loans. A guarantor can only be enough to disburse loans, he alluded.
The institution also offers business training to willing clients before they are asked to develop business plans for applying loans ranging from a minimum of K50, 000 above.
Source: Malawi News Agency MANA