RBM’s chief examiner for consumer protection & financial literacy, Madalitso Chamba stressing a point
* Loan applicants need to have sound credit-repayment status as banks are required to be verifying customers’ credit data history
* We are looking at the importance of understanding credit report and usage of moveable asset by those who are currently not able to access credit because of collateral issues
By Brenda Nkosi, MANA & Duncan Mlanjira, Maravi Express
In order to broaden access to credit for individuals and micro, small & medium enterprises (MSMEs), the Reserve Bank of Malawi (RBM) has since January been implementing a movable asset-based lending and credit reporting campaign — impressing on the public to turn all assets into opportunities.
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The campaign is amplifying the service of using moveable assets — such as livestock/seeds/agricaltural machinery; comperehensively insured motor vehicles, computers and accounts receivables (unpaid invoices/payments due from customers), among others as collateral to access credit through asset-based lending.
At a media engagement meeting on Thursday in Blantyre, Madalitso Chamba — RBM’s chief examiner for consumer protection & financial literacy — said the campaign is about promoting increased access and usage of credit by Malawians.
“In particular, we are looking at the importance of understanding credit report and usage of moveable asset by those who are currently not able to access credit because of collateral issues,” Chamba said.
RBM realised that many people have not even dared to ask for loans because they do not really understand the categories of collateral needed: “In most cases, people feel that they don’t qualify when in actual sense they have all the necessary requirements.
“Like for example, the issue of moveable asset-based lending, we have people who feel that it’s only houses which can be used as collateral for them to get a loan — yet they can use their assets such as vehicles and farming machinery.”
She indicated that the other issue which people are misinformed was about credit reporting that is used in getting a loan through which when processing loan applications, banks are required to be verifying customers’ credit data to determine if the applicants have a sound history of repaying their previous loans — including if they honour in time various utility bills.
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This means that customers, red flagged as bad debtors in other financial service providers, would have their loan applications from another bank not approved until they settle their arrears.
Credit Officer at Credit Data CRB, Alfred Mtila said credit report provides information that is very important in finances and getting loans because it speaks of the credibility of the borrower.
“The campaign is helping businesses access loans without challenges,” he said. “Since January, we are registering high numbers of people seeking credit reports.
“We have recorded a 48.4% increase of people seeking credit reports in the first quarter of 2025 compared to the same period in 2024,” he said.
Situated on the Ground floor of Umoyo House, along Victoria Avenue in Blantyre, Credit Data CRB is a Malawian-owned company with a strong understanding of the local market — collecting data which assist in giving out credit histories of clients on behalf of lending institutions as well as for individuals requests.
To fulfil this mission, Credit Data CRB was licensed by the Reserve Bank of Malawi in November 2011 having successfully satisfied the application requirements.
According to Credit Data CRB website, the data is collected from lending institutions licensed by the RBM but also collects credit data from any institution that transact on credit as they carry their businesses.
“Since our licensing we have been collecting data from bank, microfinance, insurance, cooperatives, utility institutions, government agencies, and traders,” says the institution on its website; https://www.creditdatamw.com/index.html
The institution was incorporated as Credit Data Reference and Debt Management Limited on March 17, 2005 under the Companies Act, 1984 and later evolved to become Credit Data CRB Limited — under a special resolution and with the authority of the Minister on November 19, 2010.
“The evolution was necessary to reflect the renewed focus and strategic drive to become a fully-fledged credit reference and move away from debt management which was the main function.
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“The business was established with the mission of sealing the credit information gap that exists in the country between credit providers and their existing and potential clients.
“As a credit reference bureau, our mandate is to collect and store credit histories on individuals and institutions. Lenders, including banks, micro-finances and other financial service providers, share credit information about their customers with us
“We also source information from other pertinent places like the courts, utility providers, city councils. The information we receive is used to create a credit reference report.
“Lenders use credit reference reports to help them decide whether to approve an application or not. We do not give lenders an opinion about whether one should get credit or not, we simply provide information about contact details, and details of credit commitments which forms credit history.”
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Credit Data CRB assures the business community and the public at large that they “do not exist to make lives difficult — on the contrary, our reports enhance chances of getting credit at times, it also helps the lenders to make realistic and manageable credit risks.
“Our customers are generally commercial organisations and government bodies that transacts on credit. Only institutions that transact on credit are allowed to deal with our bureau.
“As a regulated institution under license number CRBL002, we are required to abide by The Credit Reference Bureau Act 2010 and the amendment of 2015.”
The RBM and the International Finance Corporation (IFC) is implementing the financial literacy campaign on credit reporting and movable asset-based lending in collaboration with key financial sector stakeholders like banks.
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