NMB extends Sh490 billion in loans to small traders in seven months

What you need to know:

  • NMB has 36 business clubs across the country, according to NMB’s business banking head Alex Mgeni

Kigoma. NMB Bank Plc has extended loans totaling Sh490 billion to members of its business clubs during the past seven months as it fosters its involvement in the uplifting Micro, Small and Medium Enterprises (SMEs), senior officials have said.

NMB’s business banking head Alex Mgeni told NMB Business Club members at Kasulu in Kigoma that the money – extended between January and early August this year - went to finance business undertakings for 200,000 members who are mostly MSMEs as well as owners and leaders of big companies.

NMB has 36 business clubs across the country, Mr Mgeni said.

“Between January and August this year, the bank extended loans worth Sh490 billion to this strategic segment of the market, which mostly comprises customers from the education, health, trade, construction, mining, tourism, transport and manufacturing sectors,” he said.

NMB Business Clubs create a platform for the lender’s MSME customers to network and receive financial training. It is a platform that enables the bank to get feedback from its clients as well as acting as a marketing opportunity for businesses.

Mr Mgeni said that the two weeks market excursion in the western zone targets to reach at least 1,400 business club members. After Kigoma and Katavi, the team will this week be in Tabora and Shinyanga regions.

In Kasulu and Mpanda, the NMB officials also enlightened the club members on insurance services offered by the bank and how to easily access them.

On his part, the NMB Western Zone Manager, Mr Sospeter Magese, said the seminars and trainings they provide have helped club members to not only comprehend but also observe regulatory requirements of banking services.

The resource person during the meeting, economist James Mwangamba who is also a prominent businessman, said borrowers should act professionally when seeking loans so that they can be better advised on credit management and related issues.