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The Agricultural Development Bank of Zimbabwe (Agribank) has created an account aimed at attracting the informal sector as it diversifies into a micro-finance institution.
Agribank divisional manager for corporate banking Priscilla Munyeza told New Ziana that in an effort to remain relevant to the informal sector, which generally cannot afford most banking products due to high service charges, the commercial bank had diversified into micro-financing.
“Agribank has been diversified into a micro-finance institution. So far 10 of our branches are already offering the services,” she said.
The poor performance of the economy has led to the closure of many industries in Zimbabwe, leaving large numbers of people unemployed and without any option but to venture into the informal sector.
Ms Munyeza said the market determined what it wanted and the prevailing economic situation required banks to create suitable products that suited the different economic players.
“Commercialisation does not mean large, and that is why we created a Unifund account that offers quick loans after three months of sustained banking,” she said.
“You can open the account with as low as $5 and can make account deposits of as low as $2 per month,” she added.
“We pay an interest of 4 percent per annum on the account and after taking a loan, we charge 6, 5 percent interest monthly.
“The idea is for small-scale entrepreneurs to start where they are.”
Mr Munyeza said one did not need a payslip to open the Unifund account and the account was not only limited to farmers but to entrepreneurs as well.
“The Unifund account is not only for small-scale farmers but for every entrepreneur in the informal sector and the good news is you do not have to be a salaried somebody to open the account,” said Mr Munyeza. — New Ziana.
Online Reporter