Business Diversification Through Business Loan

lady market

In 2016, Feston was facing challenges in running his business. He suddenly had no access to credit, as the microfinance institution he was borrowing from had been liquidated.

“I have a hawker shop that I run, and it was not easy to have stock in the shop considering the financial crisis that I was going through,” recalls Feston.

When he met a VisionFund Malawi loan officer in September 2016, he got a loan of MK100,00.00 which assisted him to stock up his shop. He got another loan of MK100,000.00 and now is in his third cycle with a loan of MK 200,000.

From his hawker business, Feston has managed to diversify into mobile money business, selling air time scratch cards and phone charging. He also has a refrigerator in his shop which enables him to sell cold soft drinks and other fresh foods which was not possible in the past where he had to use ice blocks.

Apart from improvements in his business, Feston has also managed to put steel window and door frames for his house, which had wooden frames that were being destroyed by termites.

“My family is now enjoying a healthy life, good food and good looks. I believe our lives have been prolonged because of these things that we can now afford to do and eat. I am now able to save money at the bank and take care of situations that may arise unexpectedly and require money,” says Feston.

Feston has plans to increase his loan amount to MK500,000 to extend his business premises to be able to increase stock. He is very thankful for VisionFund Malawi loan officer Mirriam Chakana who serves them well and is happy that VisionFund Malawi recently opened a branch closer to where he lives.