* As RBM enhances awareness campaign on movable asset-based lending, credit reporting and collateral registry
* It has become clear that there is still a significant knowledge gap when it comes to credit reporting and how it affects access to finance
* The collateral registry is a powerful fully-automated online mechanism for increasing access to credit, especially for small businesses
By Duncan Mlanjira
The Reserve Bank (RBM) — in partnership with the International Finance Corporation (IFC) — is on a awareness campaign for the business fraternity to utilise movable asset-based lending, which is becoming a practical tool for unlocking capital where traditional collateral, like land or buildings, may not be available.
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The campaign is going alongside sensitisation on credit reporting and collateral registry — credit reporting being noted that it has become clear there is still a significant knowledge gap when it comes to credit reporting and how it affects access to finance.
The collateral registry — Personal Property Security Registry (PPSR) through Department of the Registrar General — is a powerful fully-automated online mechanism for increasing access to credit, especially for small businesses.
At a media engagement to deepen public understanding of the Collateral Registry and Movable Asset-Based Lending (MABL) to unlock broader access to credit for individuals and micro, small & medium enterprises (MSMEs), RBM emphasised that the initiative is part of a broader campaign to improve financial literacy, promote the use of credit reports, and support MSMEs in accessing finance using movable assets such as equipment, inventory and receivables.
The moveable assets includes livestock/seeds/agricultural machinery; comperehensively insured motor vehicles and computers; and accounts receivables (unpaid invoices/payments due from customers), among others as collateral to access credit.
Present at the media engagement were representatives from the Department of the Registrar General as well as from National Bank Malawi and NBS Bank, who highlighted the expanding availability of lending products that use movable assets as collateral.
On the part of the Registrar General’s services, Flora Shoba emphasised the significance of PPSR in the evolving financial ecosystem, saying: “The collateral registry provides transparency to other potential creditors, preventing multiple claims on the same movable assets.
Flora Shoba
“It enables borrowers to register their movable assets, which lenders can then verify quickly and securely. Increased usage of the registry will ultimately support a stronger, more inclusive credit market.”
Also present were representatives from credit reporting services, Credit Data CRB and TransUnion Malawi, whose country manager, Dumisani Kadango said they have noted a marked shift in consumer behaviour.
“In the first quarter of 2025 alone, we’ve seen a noticeable 35% increase in CRB requests — demonstrating an increase in the number of Malawians requesting their credit reports and querying the information therein.
“This is a clear indication that more people are beginning to understand the value of maintaining a good credit history and the role it plays in accessing finance.”
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Alfred Mtira, Marketing Officer for Credit Data CRB, attested to this saying since the initial launch of the awareness campaign, “it has become clear that there is still a significant knowledge gap when it comes to credit reporting and how it affects access to finance.
“We have conducted numerous consumer education sessions across the country, including at universities, and the response has been overwhelming,” Mtira said. “Encouragingly, since the campaign began, Credit Data CRB have also recorded a 48.4% increase between Quarter 1 of 2024 and Quarter 1 of 2025 in the number of people requesting their credit reports or querying the information contained in them.
“This positive trend reflects the impact of the Working Group’s efforts to raise awareness around the importance of credit, understanding your credit status, and maintaining a healthy credit history,” he said, while emphasising movable asset-based lending “can be a game-changer for individuals and MSMEs across Malawi”.
It was noted that Malawian banks are increasingly offering innovative lending solutions tailored for MSMEs and on the part of NBS Bank, MSME customers can access movable asset-based products if they have an active NBS account for 6 months; quotation of the asset from the supplier; valuation report; Sale/Offer Letter Agreement; latest audited/management accounts; 12 months cashflow projections and clean Credit Data CRB report.
NBS Bank also has Invoice Discounting product through which customers can access immediate financing of up to MK200 million against unpaid invoices of reputable off-takers — whose tenure is 90 days and accessible up to 4 times in a year.
For Commodity Financing facility, customers can access seasonal loans to purchase agricultural commodities, whose collateral is the commodity under a Collateral Management Agreement (CMA). The facility is particularly important to manufacturers and commodity traders.
On Asset-based Lending, NBS clients can qualify for this loan to purchase vehicles, equipment and machinery. The product provides flexible repayment structure to suit the client’s cashflows and customers can repay the facility up to 8 years depending on the financed good.
Customers can access Agribusiness Asset Financing facility to purchase agricultural equipment/machinery like harvesters, irrigation systems and others, whose tenure is a maximum of 5 years.
NBS Bank can also secure SME Term Loans, Working Capital Loans and other credit products with movable assets as collateral — with retail customers needing to have an active Salary Account at NBS Bank or 6 months recent bank statements for self-employed individuals.
It includes latest 3 payslips for salaried customers; quotation of the asset from the supplier and its valuation report, valid National ID; income to installment ratio not to exceed 50% and clean Credit Data CRB report.
NBS Bank has also modified its Invoice Discounting product by introducing a new customer value proposition in response to market feedback, which has higher limits and affordable interest rates.
“The Bank is eager to leverage insights from the IFC/World Bank interventions on moveable asset based lending to further enhance its products and offer greater choice to its customers. The Bank seeks to create more awareness for the MABL products and serve more customers,” says the NBS Bank.
For National Bank of Malawi, Capex Loans include acquisition of equipment (machinery), whose tenor depends on the life of the machinery up to 7 years.
Repayments are from the normal business proceeds; security is by way of registering the financed machinery in PPSR supported by comprehensive insurance cover.
Finance Lease, for the purchase or maintenance of movable assets like machinery and motor vehicles, the lessee (customer) pays for the loan instalment and title is transferred to the customer after full payment of the agreed amount.
Security is by way of registering the financed asset in PPSR supported by comprehensive insurance cover. Examples are straight finance lease, sale and lease back and top up/maintenance lease and vehicle loans.
Inventory Financing product finances purchasing of stocks like soya bean; either as a short-term loan or overdraft whose repayment is through normal trade receipts or bullet payment upon receipt of sale proceeds.
The facility is secured by lien over the financed stocks supported by Stock Monitoring Agreement with collateral managers.
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Invoice-based Financing receivables is either as a short-term loan or overdraft against invoices from reputable organisations, whose repayment is through normal trade receipts or bullet payment upon receipt of sale proceeds.
It is supported by assignment of proceeds where the customer’s debtor makes a commitment to pay direct to the National Bank.
Asset-based/home improvement/mortgage finances various needs of a customer including acquisition and improvement of landed properties of up to 85% of the property value — secured either by the property being financed or another property.
The RBM contends that campaign — supported by international donors and implemented through a multi-stakeholder working group — “seeks to empower consumers with knowledge about their credit rights and the financing opportunities available to them, while encouraging greater trust and engagement with Malawi’s financial infrastructure”.
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