MW REGISTERS LOWEST LENDING RATE IN 38 YRS – Malawi News Online

From 1981 to date, Malawi had the highest lending rates. A review in April 2001, saw the base lending rate hit 65%. Since then, the rates stood still but begun to steadily decline from October 2016 when they were seen at 37.1%. As of 2019, at 13.4%, Malawi has registered its lowest lending rates in almost 40 years.

By 2014 in May, RBM’s published bank charges indicated exorbitant charges for commercial banks with up to 47% interest rates on loans. According to the published rates selected charges as of March 31 indicate that maximum lending rates on personal loans ranged between 40% and 47%. Savings interest rates range between two percent to 15%.

Consumers Association of Malawi (Cama) executive director John Kapito, described the situation as unfortunate, noting that there is a glaring mismatch between the savings and the lending rates which leads to financial exclusion.

5 years later in 2019, the lending rate was lowered twice, from 14.5 to 13.5%.