President of Mzinda Savings and Credit Cooperative (SACCO), Mphatso Nkuonera, has cautioned its members against the tendency to borrow for consumption to avoid being perpetual borrowers.
Nkuonera further warned that borrowing for consumption is risky and unsustainable.
He was speaking at the Bridgeview Hotel in Lilongwe on Saturday during the 2022 Annual General Meeting (AGM) of the cooperative.
Nkuonera said time had come for the members to start borrowing for investment in order to maximize benefits from their membership with the institution.
"Let us invest every coin we borrow from our SACCO. That's the only way we can come out of financial problems," he said.
At the AGM, it was announced that the cooperative had made a surplus of K27 million profit in 2021 up from K13 million the previous year.
Nkuonera attributed the increase in profits to fiscal discipline among board members and the secretariat and the commitment by its members to save.
He disclosed that the cooperative will continue devising mechanisms for growing its membership.
Nkuonera said, among others, that in an effort to woo more Malawians to save, Mzinda Savings and Credit Cooperative (SACCO) has introduced Yawina Promotion in which lucky customers will go away with various prizes.
The cooperative has also launched a walk-in loan facility targeting civil servants.
Customers are required to open a fixed deposit account and save up to K100, 000 to win in the promotion.
The cooperative gives out T-shirts, shopping vouchers and smartphones to lucky winners.
"In addition to the promotion, Mzinda SACCO is offering a walk-in loan for civil servants that can be accessed on the same day of application. New civil servants can get up to K500, 000 payable in 12 months," he said.
Nkuonera said to access the loan, the customer will simply be required to produce their identity card and employment number.