First Microfinance Centre - Blantyre, Malawi

Katapila and Banki Mkhondes are the order of the day at most work places in the recent times. Katapila or money sharks would charge up to 100% interest per month while Banki Mkhondes demand between 20% - 30%. While formal banks offering pay day loans are charging between 20% - 30% per month, FMC pay day loan is designed and meant to rescue employees from this trap. FMC Payday Loan is only at 10% per month. No any other charges are levied on this loan facility. Minimum loan amount is MK10,000.00 and the debt service capacity determines the limit or MK1.0Million.

The facility is available to employees regardless of their employment status. The facility is meant to entirely relieve employers of the cash flow and management burden of abrupt loans which ordinarily may not fit into any criteria. This product is designed largely for all staff especially those in the shop floor to Middle and senior managers who need cash quickly and pay on payday. The employee will submit a quick Application Form in a prescribed format and submit through the employer attached the previous month payslip and copy of a National ID. The loan shall be approved within 4 hours and money disbursed through a direct transfer to a bank account. The online submission of the application for Payday Loan is highly preferred than the manual one. Customers are encouraged to submit their applications through the Customer Service Portal. The entire loan including interest shall be recovered the same

The facility is designed to assist working class at whatever level to help themselves improve their living standards in a such a manner that they can acquire necessary consumer durables enabling them lead a descent and comfortable life. On the part of the employer, the facility’s is meant to entirely relieve him of the cash flow and management burden of Personal Loans or staff loans generally. It is ideally designed for consumer durables purchase like Sofa sets, dining sets, Display Cabinets, Fridges, Cookers, TV screens and decorders, etc. Personal loans are recoverable in maximum period of 24 months. The employee will complete a Personal Loan Application Form, attach Payslips of the previous 2 months and a copy of a National ID Card through the employer. The facility shall be approved within 2 days and once the loan has been accepted, disbursement through direct transfer to a bank account will be made a day later. The entire loan including interest shall be recovered within 24 months. Currently personal loans attract 42% interest rate per annum charged at monthly declining balance.

The facility targets permanently employed applicants from parastatals and blue chip companies. This product will serve also under corporate finance whereby all employers with car scheme for their managers can access finance to purchase brand new cars or demo units for their managers under car scheme arrangements. Under corporate finance the companies and parastatals can buy brand new pool vehicles too. Organizations can buy office equipment, core software and build data centres using this facility too. Asset Finance Facilities are recoverable in maximum 48 months. Under this sub-category, employers enjoy substantial interest rate cuts and other waivers.

In case of ordinary employees buying motor vehicles must not be older than 8 years. Employees are allowed to utilize this facility to acquire land or redeem mortgages. Employees are required to register the title of assets acquired under this facility in the name of FMC and surrender those title documents to FMC too.

The Employer must submit audited accounts annually. The facility is available to employees of the organization who are confirmed and are not under any disciplinary issues. The facility’s intention is to entirely relieve employers of the cash flow and management burden of Car loans for Staff, Car Scheme managers buying brand new vehicles including the organization itself buying pool cars.

The employee must physically submit an application through the employer to FMC. All IDs, Letters of Undertaking and other KYC requirements must be attached to the Application Form. The loan shall be approved within 4 days and once the loan has been accepted, disbursed by direct payment to the motor dealer in case of brand new vehicles and second hand vehicles to the vendor. All Asset Finance Facilities and Leases shall carry full service package and maintenance contracts covering the loan period. The entire loan including interest shall be recovered within 48 months.