Nationwide Microbank explains new personal loan service

 NATIONWIDE Microbank (MiBank) says it has a personal loan service called MiLoan which is a salary loan product for salary and wages earners.

According to a statement from the bank, for this product, repayments are deducted directly from the employer. 

MiBank marketed the new product in conjunction with its MiPei payroll facility, used by many companies and government departments to distribute bulk payments to MiBank by way of an encrypted file.

Upon receipt of the payroll file, MiBank uploads the payments to employees’ accounts for savings or insurance or to repay loans.

MiBank has a distinct advantage over finance companies that provide salary loans, because upon drawdown of a MiLoan, funds can be disbursed immediately to a bank account at the same institution.

As a result, following credit checks, MiBank can in most cases disburse loans within the same day of receipt of application.

The bank said it could also provide borrowers with other services such as life insurance, interest-bearing deposit facilities, and mobile banking (MiCash). 

MiBank prefers to provide a relationship with its clients which focuses on all their financial needs, not just borrowing.

MiBank said it took its corporate social responsibility seriously.