Malawi Enterprise Development Fund (Medf) has cut its loan processing period from 30 days to 12 days, a move that could improve access to finance and help businesses expand their market opportunities. Medf chief executive officer Kayisi Sadala said in an interview on Wednesday that the move aims to improve service delivery and allow entrepreneurs … The post Medf loan processing period down to 12 days appeared first on Nation Online .
Malawi Enterprise Development Fund (Medf) has cut its loan processing period from 30 days to 12 days, a move that could improve access to finance and help businesses expand their market opportunities.
Medf chief executive officer Kayisi Sadala said in an interview on Wednesday that the move aims to improve service delivery and allow entrepreneurs to respond to business opportunities.
Sadala: Time is money
He said: “We have reduced the turnaround time to improve service delivery and ensure that entrepreneurs access financing when they need it.
“For a small business, time is money. Faster access to financing allows entrepreneurs to respond to opportunities, meet orders and deliver goods and services on time, helping them increase income and grow.”
Sadala assured that measures have been put in place to ensure that faster loan disbursement does not compromise loan assessment.
“Faster processing does not mean fewer controls. Medf has trained credit officers, established checks and balances and an active risk management function to ensure that loans continue to meet the required credit and risk assessment standards,” he said.
One of Medf’s former beneficiaries, Austin Phiri from Kasungu, hailed the new policy, saying it would help beneficiaries use the money for the purposes for which they borrowed it.
Phiri benefited from the institution before it was rebranded from the National Economic Empowerment Fund (Neef) to Medf.
He said: “We sometimes lost hope while waiting and had to change our plans along the way. If loans are processed quickly, people will be able to implement their plans as soon as they receive the money.
“Sometimes, we formed groups that were strong in the beginning, where we shared knowledge and business skills. However, when the money was delayed, the groups became disorganised, leaving us with fewer opportunities to share knowledge and business skills.”
Phiri said the lengthy loan processing period affected most businesses’ plans.
“In the course of waiting, we made several trips to follow up our applications. In some cases, we borrowed money from other people, which meant spending money before accessing the loan. This affected our plans,” he said.
Mzuzu University economics lecturer Christopher Mbukwa welcomed the decision, saying it would help small-scale businesses to access capital within a shorter period.
“It is welcome. It is going to help people who have applied for loans to access them quicker. That’s within the principles of financial inclusion.
“Many small-scale businesses struggle to access financing, either through borrowing or other services that commercial banks and financial institutions offer,” he said.
Mbukwa said one of the barriers to accessing finance has been the lengthy process, partly because of the amount of documentation and requirements that need to be scrutinised.
He cautioned Medf and beneficiaries to uphold strict adherence to lending and financial management principles under the new policy.
Medf was established on January 29 2005 through a presidential decree. The institution was initially named the Malawi Rural Development Fund (Mardef), before being rebranded as Medf in 2014. It was later renamed Neef in 2020 and subsequently rebranded as Medf.
The post Medf loan processing period down to 12 days appeared first on Nation Online.
Follow the story
