National Bank of Malawi plc (NBM) has introduced a new share purchase loan product, aimed at providing clients with the means to finance stock acquisitions.

Oswin Kasunda, Head of Retail Banking Services at NBM, explained that the introduction of this facility is in response to market demand and seeks to address challenges associated with accessing capital for stock purchases.

"The loan facility will be administered exclusively through Stockbrokers Malawi Limited and is specifically designed for purchasing shares," Kasunda explained.

The new product allows clients to secure a minimum loan amount of MK 250,000, repayable over a period of 36 months.

Kasunda highlighted the inclusivity of the offering, emphasizing that it caters to a diverse range of customers, including individuals and SMEs.

"This initiative will enable various customer segments to access loans for purchasing shares on the Malawi Stock Exchange through our subsidiary, Stockbrokers Malawi Limited," - said Kasunda.

"We have conducted thorough research and are confident that this product is demand-driven. Many people lack the capital to purchase shares, and our customers have been requesting such a facility."

"We have set the minimum loan amount at K250,000, with an interest rate of 6.1% above the reference rate, making it accessible and affordable."

Noel Kadzakumanja, Chief Executive Officer of Stockbrokers Malawi Limited, commended the initiative, anticipating that it will encourage broader participation in the stock market.

"Often, customers do not have the cash on hand to buy shares, so we expect this product to increase participation in trading," -Kadzakumanja said.