Village savings loans are bad

Money currency

A chief in Malawi’s Chiradzulu district has expressed worry over the increase of disputes from village savings groups in his court.

In an interview with Malawi24, Traditional Authority Ntchema of the district explained that he usually receives cases of people who default on loans and members who run way with groups’ money.

He added that this is leading to seizure of people’s property including houses and land if ones fail to honour agreements, a development which he says leaves the victims in poverty.

Money“Those who are failing to pay back the money are losing their belongings because fellow members from the group come and take away properties equivalent to the money owed,” he said.

He described lack of good business management and dishonesty of group members as main factors contributing to the increase in these cases.

Ntchema, however, noted that the initiatives are also good since they lend a hand in uplifting the economic status of villagers in his area.

He asked other stakeholders including government and Non-Governmental Organizations (NGOs) to help eradicate the problem by providing the communities with skills and education on how they can use the money for their benefit.

“This is a good initiative because it helps many people to have a chance of lending money and start small businesses and be able to support their families.

“These village banks have brought the remarkable developments in my area, for example, others started businesses with loans from these groups and have managed to build good houses, educate their children, and many other developments that transform them,” he said.

Village savings group are one of the means advocated and supported by government and organizations which are used to empower communities economically.



  1. i support village banks. their interests are cheap, only that amalawi ena amabwereka ndalama alibe nazo bizimisi ili yonse, kungofuna zodyera in the end they have no source of income to repay the loan. koma as compared to katapila wa mmaBank athu aku malawi kunoyu am very sure that the village banks are very important indeed.

  2. This is really very bad business. I hv lost a lot of money including my expensive new phone missed by my new wife whom i had put my mind to marry and this time there’s ???????? either I may proceed to marry her because she never reveal where the phone is gone although I assisted her to repay about a hundred thousand kwacha loan which did not concern me just to avoid loosing iron sheets and a home garden which was about to be taken from her. I shall not support this through my own experience.

  3. kkkkk komaditu zimenezi ena achotseledwa malata pa nyumba,kulandidwa minda ,enanso kusiya banja ndi kuthawa ana kuwasiyira abambo okha ,kkkk

  4. Sizili ku Chilazulu kokha ayi ku Karonga nakonso Anthu abiba nazo zinthu zimenezi pobwera amabwera ngati ndizinthu zaphindu koma pomaliza pake ziku nyoza anthu,zikuma kulanditsa ndikomwe unapeza wekha kaja,ndikumusiya munthu pamtetete.

  5. Sizili ku Chilazulu kokha ayi ku Karonga nakonso Anthu abiba nazo zinthu zimenezi pobwera amabwera ngati ndizinthu zaphindu koma pomaliza pake ziku nyoza anthu,zikuma kulanditsa ndikomwe unapeza wekha kaja,ndikumusiya munthu pamtetete.

  6. My fellow Malawians, my question is Who started or brought in this Village banking ? if he or she did not lead people in the right direction

    1. These Village Savings and Loan Associations or Groups started somewhere in Niger, and was copied by other African countries like Kenya, Tanzania and Malawi later joined the development after seeing the advantages and benefits. But strong sensitization by extension workers/development agents is required before the introduction of any VSL in a community so as the community should be aware as to who really qualifies as a member of such groupings, otherwise those banks they are the best as compared to commercial banks

    2. MAX! Amene anayambisa zama Village Bank Samadziwika bwino koma kwathu kuno ku Karonga zinabwera ndika bungwe kenakake ka Roman Cathorics kama tchedwa Lusubilo Orphan Care.

    3. I give u example, here in karonga, a woman wa brutary beaten ,cut with panga knives leaving her bleeding blood coz of suspected of keeping money for the group,as I am writing she is in hospital fighting for her life, another one collupsed to death when her children store money she was keeping for the group

    4. Vto ndifeo en wake tinazolowera kusakhulupilika tikaona zachuluka kuchulusa mzeru kufuna kulemera mwachangu pamapeto zikusia anthu paukapolo cfk chilungamo tilib en wake

    5. Charles, like I have put it, it started in Niger buy a group of women who were puting resources together n give them to members as capital for businesses, was then supported by Care International. It is dangerous wen the group starts without proper training because issues of confidentiality are hi lighted during the training, hope the reason Lusubilo exist in your area to assist the village banks to ensure security, trust amongst the group members, on security issues of household history is much reflected including that of behaviour of children for the to be box keepers. In addition monies are not allowed to accumulate in the box but rather loaned out to members at the closure of the meeting to ensure security and at the same time attaining of more profits through interest set by the group stipulated in their constitution. Let us encourage more people to join the groups

    6. inutu aMaxwell bodza limenelo ife anzanu tupanga chitukuko kamba ka V B yomwe. omwe zimawavuta ndi makhuluku osafuna ku bweza credit munthawi yake. koma. ngati zuyenda palibe Vuto. Kkkkk

  7. Think of another title for this story, you are contradicting yourself.

  8. Malawians, especially those who take villagers as weopones ndicholinga chowadyera masuku pamutu, stop doing or bringing confusion among people who were loving one another but ar fighting each other coz of u

  9. Its Not only there chief even in kasungu have even lead to divorces. Many ladies are not faithful coz of these banks. They are getting loans without concert of their husbands. Husbands are told to pay back loans which were not told and not even Know where the money went. In other families wives are getting money from zibwezi ( males) and cheat the husband that its from village banks. These banks are for the good of our country but we are misusing them and husbands are discouiraging their wives now. More civic education needed.

  10. ngati a chuma chawo sachita nawo za Village bank, ndiye munthu wosauka alibe kalikonse, mungamukongoze ndalama, kodi simiziwa ndalama ndi chinthu chosasewera nacho, ngati Dziko imagulisa ma kampani ena, imagulisa ma bank mwayesa ndi chani, zayambikazi ndu chisokonezo, kulandana katundu, kuphana ziyambika, zinthu zimaoneka ngati za bwino zikamayamba, zimakhala ndi kuyipa kwake, tiwona zochuluka, a Malawi

  11. I don’t think VS&L methodologies are Bad. The worst are the people breach the principles of VS&L

  12. A mfumu, tsono pamenepa anthu tigwire ziti? Chifukwa zikuonetsa kuti mwapereka zambiri zabwino za ngongolezi kusiyana ndi zoipa zake. Ndiye tinene kuti mukuyamikira kapena mukudandaula? Kapena mtolankhani sanakuvetsetseni ndiye walemba mutu wa nkhani molakwika, mmalo moti akanalemba ” village savings are good”? Kaya mwina sindikuvetsa ndi ineyo. But to me, the program is good because the advantages outweigh the disadvantages. Merry Xmas & a happy new year to you all !!!!!!!

Comments are closed.