Smart Cover

Service/Product Target

Retail Clients, SMEs, Registered Partnerships, Corporates and Institutions

Product Attributes / Features

• Loan tenures from 3 months to 11 months (maximum repayment period = cover period minus 1 month)
• Quick turnaround time
• Low interest rate
• Flexible payment terms
• Monthly instalment capped by tiered debt service ratio based on net salary/honoraria deposited into NBM account:
  • ≤ MK500,000 → 30% repayment ratio
  • > MK500,000 – ≤ MK1,000,000 → 35%
  • > MK1,000,000 – ≤ MK2,000,000 → 40%
  • > MK2,000,000 – ≤ MK5,000,000 → 45%
  • > MK5,000,000 → 50%
• Interest rate: 6.1% above the ruling reference rate (currently 24.7% for unsecured loans)
• No penalties or cooling-off period for early repayment

Benefits To The Customer / User

• Competitive and low interest rate compared to market
• Fast processing and quick access to funds
• Flexible repayment aligned with salary/honoraria structure
• No early repayment penalties
• Designed to support insurance premium financing (e.g. motor, business insurance)

Costs To Access The Product

• Processing fee: 1.5% of loan amount (maximum MK2,000,000)
• Credit Reference Bureau fees:
  • MK3,567.00 (Credit Data)
  • MK3,500.00 (Transunion)
• Interest at 6.1% above ruling reference rate
• Default charge: maximum MK129,060.00 (current cap), minimum 50% of monthly instalment

Account Opening / Application Requirements

• Completed application form
• Completed ADV 4 form
• Letter of undertaking from employer OR letters of commitment to deduct repayments
• Latest utility bill
• Sketch map
• Valid identification (passport, driver’s licence, or National Identity Card)
• Copy of Motor Vehicle Registration Certificate (for motor insurance applications)
• Business Registration certificate (for SMEs and partnerships)
• Latest trading account statements (for SMEs and partnerships)

Terms and Conditions

The Bank reserves the right to set off any outstanding loan amounts against credit balances held in any accounts owned by the customer. Maximum default charge is currently capped at MK129,060.00. Early repayment is allowed without penalty.

Customer Recourse

Complaints or Comments? Please call 626 or email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Redress Mechanism: In case of dispute, lodge a complaint with the Registrar or file a lawsuit.
Contact the Registrar: Tel: 01 820 299 / 444 | Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Mail: The Consumer Protection Unit, Reserve Bank of Malawi, P.O. Box 565, Blantyre
Visit: www.rbm.mw

Right to Loan Statement

You have the right to obtain a statement of the loan at any time.

Termination of Loan Product and Service

You have the right to terminate / repay the loan before its expiry date (no penalty applies).