MEDF Set to Roll Out Loans for Underserved Malawians

By Dean Chisambo……..

The Malawi Enterprise Development Fund (MEDF) says it is ready to start disbursing loans to underserved Malawians to support small businesses and promote economic empowerment across the country.

Speaking in an interview with The Malawi Guardian on Friday in , MEDF Chief Executive Officer confirmed that the institution has finalized preparations for the loan rollout.

Sadala said the loans will be offered under two categories: group lending and individual lending.

Under the group lending arrangement, each member in a group of 10 people will be eligible for a minimum loan of K250,000.

For individual lending, borrowers will be able to access loans of up to K250 million, subject to the provision of collateral.

“The collateral for group lending is the group itself. If one member fails to repay the loan, the entire group will be responsible for covering the repayment,” said Sadala.

He added that individual borrowers will be required to provide assets as collateral before accessing the loans.

According to Sadala, MEDF has allocated at least K10 million for the group lending category, with the possibility of increasing loan amounts for borrowers who maintain good repayment records.

He further revealed that the institution has managed to recover between 45 and 50 percent of defaulted loans issued in 2025, when MEDF was still operating as the National Economic Empowerment Fund (NEEF).

Sadala warned borrowers against defaulting, saying the institution will take legal action against those who fail to repay their loans.

MEDF has set aside K100 billion for disbursement to underserved Malawians as part of its broader economic empowerment drive.

As part of awareness efforts, the Fund on Wednesday conducted an outreach campaign in Mayani, , to educate communities about the loan programme.