Financial institutions that lend money to small and medium businesses have been trained on accepting movable assets such as maize mills as collateral.
The training was organised by the Ministry of Justice and Constitutional Affairs in conjunction with the World Bank Group on movable asset-Based Lending for Financial Institutions in Malawi.
The training was delivered by experts from the Commercial Finance Association (CFA) from the United States of America and the Department of the Registrar General and it was attended by 60 participants from 11 banks, 8 microfinance institutions as well as the Reserve Bank of Malawi.
Speaking to Malawi24, one of the participants at the training, McMillan Bula from Worth Net Finance said the training has been an enlightenment as they are a new company which has been operating for 7 months.
“The training has been an eye opener to me and my company as I have learnt how to secure the loans and offer it to the lenders,” said Bula.
Commenting on the same, Registrar General Chapusa Phiri said they organised the training to let participants know that they can lend money without asking for land or houses as collateral.
“We have organised this training to let participants know that one can lend money using other movable assets like vehicles, livestock and crops,” said Phiri.
He added that with the training, lending institutions have been assured that people who borrow money from them will give back the loans using movable assets.