Lic Finance growing SME sector

19 January 2017

Lican Mlambo
Lican Mlambo

Micro finance lender, Lic Finance Private Limited Managing Director Lican Mlambo, said those who are facing monetary problems should approach them for flexible, accessible and cheap loan facilities.

He reviewed this in his interview with H-Metro where he said they have come to fill the gap that is being left by banks when it comes to meeting the clients needs.

“We as the financier we are here to fill the gap were the banks are not meeting the clients’ demands.

“Take for example you apply for loan at the banks it may take two weeks or a month going through your application, but here were are small, the decision making is quick,” he said.

He also said unlike big banks their loans are very quick as one can be given his money the same day they would have applied.

Lic Finance Private Limited offers salary based loans to civil servants and SMEs at a 9% per month interest rate.

Mlambo also said that since their inception into the market in 2014 they have managed to lend over US$300 000 to the market which has grown by around 7 percent since it opened its doors barely two years ago.

He said Lic Finance is also targeting a 100 percent growth on its loan book from the current $500 000 to $1 million by year end as it seeks to increase lending to the growing small to medium enterprises and civil servants.

He said their main aim in the market is to create wealth for their clients.

“Our main objective is to create wealth for our clients,

“We look at viable projects and follow up on them with our team offering technical expertise to ensure they are successful.

“This our way of growing the SME sector and assist civil servants who do not have access to financing from big banks,” said.

Mlambo said while non-performing loans have been a burden for the financial institutions in Zimbabwe; Lic Finance enjoys a clean balance sheet, thanks to its client base and relatively smaller size of the institution.

“Last year RBZ capped interest rates for microfinance institutions at 10% with effect from October 1.

“Some Microfinances had been charging up to 20% per month stifling access to funding by SMEs and traders.

Apart from giving loans for businesses Lic Finances also offers instant short term loans depending with the problem one is facing.

“Imagine you have a shortage for tuition fees or your child gets sick you can’t get into a bank and apply for a loan.

“For us we have no time limit we are flexible, you can call at any time and we can respond to your call and assist you in the best ways we can.

“We understand our role of bridging the gap left out by banks in providing emergency loans for food, funeral expenses, medical aid bills and other day to day emergences that may arise,” said Mlambo.

Mlambo said the company has managed to grow to a large customer base over a considerably short time in existence, mainly due to the level of ethics observed and the standards of customer care.

He added that Lic Finance Private Limited aims to deliver and strives to conduct its affairs and business with honesty, in accordance with a good and sound business principle in full compliance with all applicable laws and statutes.