National Bank of Malawi (NBM) plc has launched an insurance premium financing facility where the bank will pay annual insurance premiums on behalf of its customers thereby freeing up their cash flow in the process.

During the launch of the product, NBM plc Head of Retail Banking Division Oswin Kasunda said the Insurance Premium Finance (IPF) enables our customers both retail and corporate clients to pay their insurance premiums in installments rather than in one lump sum amount. “This facility has a low interest rate and allows the customer to spread the cost of insurance over the term of the loan,” said Kasunda, “Insurance Premium Finance also smoothens business cash flow by allowing payment of premiums in monthly affordable instalments.The security for the loan is the policy itself and its proceeds, no other security is required,

IPF covers premiums for commercial, auto, plant and machinery and other major insurance covers, offering quality service and fostering goodwill between the bank and insurance customers who have had challenges to pay insurance premiums upfront.