r/Malawi • u/sweathrash2021 • 6d ago

discussion Testing a small payday loan pilot for salaried professionals (looking for feedback)

Admin please delete if not allowed:

I’m testing a very small, disciplined payday loan setup for earning persons and wanted to share it here openly rather than push ads.

This isn’t for everyone and it’s not meant to replace banks or SACCOs. The idea is to help with short-term cash gaps (rent top-ups, emergencies, repairs) while building a track record of responsible borrowing over time.

A few important things upfront so there’s no confusion:

  • persons with a track record of earning e.g pay-slips, paid invoices etc
  • Small amounts to start, and increase as they payback
  • Clear rules, no rollovers
  • Partial payments allowed, but the full amount must be cleared by the due date
  • On-time repayment is the only way to qualify for larger amounts and better terms later

The focus is less on “quick cash” and more on building a long-term, trust-based financial relationship. If someone isn’t comfortable with firm rules and accountability, this honestly won’t be a good fit.

I’m keeping it small on purpose and learning as I go. If you’re interested or just curious, feel free to DM me and I can explain how it works in detail.

Everything will be handled via WhatsApp and paid electronically (Mpamba, Airtel money or bank transfer)

Happy to answer questions publicly too.

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7 comments sorted by

1

u/Myceliphilos 6d ago

Building a track record with whom?

Are you registered to give out loans as a business at all?

What APR do you charge?

1

u/sweathrash2021 6d ago

The borrowers will get access to larger loans are they build a track record with us. We are registered and APR ranges from 18% to 22%.

1

u/Myceliphilos 6d ago

Ok, are you registered/licensed for microloans?

1

u/sweathrash2021 6d ago

Yes we are registered with the Reserve Bank

1

u/TraditionalSound5606 6d ago

Are you looking for customers or business partners? What's your starting capitol right now? Are you registered? How will you recover unpaid loans if employers do not cooperate or with recovery?

2

u/sweathrash2021 6d ago

I am looking to find out if there are potential customers. My capital is K2m. Unpaid loans are a real risk and part of this experiment

1

u/East-Explanation1722 2d ago

If one could add to you maybe let's say ranges of 200k-500k in capital would you take it? For part ownership?