Business Banking › Loans

SME Overdraft Facility

A flexible credit facility for managing short-term working capital or consumer requirements. Available to current account holders with negotiable rates tailored to your business needs.

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Facility Details

Facility Amount

50% of Average Monthly Turnover

Interest Rate

Negotiable

Loan to Value Ratio

80% on Real Property

Purpose

Working Capital

Eligibility & Security

As per current tariffs

Account Status

6 Months Active Current Account

Target Business Types

Sole Trader, Partnership, Ltd Company

Security Required

Real Property at 80% LTV

Collateral Insurance

Full Value Coverage Required

Requirements to Access the Facility

Sole Proprietors

6 months active account
Monthly business income credited to account
Cash flow projections
Financial statements
Business plan and company profile
Insurance policy covering full collateral value

Limited Companies

6 months active account
Certificate of Incorporation
Memorandum & Articles of Association
Board resolution
Cash flow projections
Business plan and company profile
Audited financial statements
Management accounts
Insurance policy with bank interest noted

Partnerships & Trusts

6 months active account
Partnership deed or Trust document
Certificate of Registration
Financial statements
Cash flow projections
Business plan and company profile
Insurance policy covering full collateral value

How to Access

Any NBS Bank Service Centre
Internet Banking (EazyOnline)
Contact our Business Banking Team

Complaints Handling

Call Centre — 322
Walk-in Branch
Emails

SME Overdraft Facility FAQs

A credit product designed to boost short-term working capital requirements for sole traders, partnerships, and limited companies with an existing NBS Bank current account.

The SME Overdraft Facility is a credit product aimed at boosting short-term consumer or working capital requirements for customers with an NBS Bank current account . The target group for this facility includes Sole Traders, Partnerships, and Limited Companies, making it accessible to various types of small and medium enterprises operating in Malawi .

The maximum advance available under the SME Overdraft Facility is 50% of your average monthly turnover or net income . This means your approved overdraft limit is directly tied to your business's earnings performance, ensuring that the facility remains proportionate to your actual business activity levels.

The interest rate for the SME Overdraft Facility is negotiable . This allows for flexibility based on your business's risk profile, banking relationship with NBS Bank, and current market conditions. For current rate information, you are advised to contact NBS Bank directly or visit any NBS Bank Service Centre.

The primary security required for the SME Overdraft Facility is real property at an 80% Loan to Value ratio . This means you must pledge property as collateral, and the loan amount will not exceed 80% of the property's appraised value. You will also need an insurance policy covering the full value of the collateral, with the Bank's financial interest duly noted on the policy .

Sole proprietors must meet several requirements to qualify for the SME Overdraft Facility . You must have an active NBS Bank account for at least 6 months, with business income credited to the account on a monthly basis. You will need to submit cash flow projections and financial statements, as well as a business plan and company profile. An insurance policy covering the full value of the collateral is also required, with the Bank's financial interest duly noted.

Partnerships and trusts must similarly have an active NBS Bank account for at least 6 months . You will need to provide cash flow projections, a business plan and company profile, and an insurance policy covering the full value of the collateral with the Bank's financial interest duly noted. Additional partnership-specific documentation such as a Partnership Deed may also be required during the application process.