Mangochi South West legislator Shadreck Namalomba says he has plans of bringing into the House, a private members’ bill on interest capping.

According to Namalomba, the Bill seeks to prohibits banks and financial lending institutions from recovering more than 100% of the loaned amount.

Speaking in Parliament today, the Mangochi South West lawmaker said exorbitant interest rates on loans from banks and other financial lending institutions have seen most Malawians failing to service such loans.

“Our expectation is that the banking sector should stop charging interest on a non performing loan.

But they keep on charging that interest which makes the loan to result in excess of over 100% internet, and we trying to prohibit that,” said Namalomba.

He added that the Bill is different from what was earlier shot down by the same House last cohort.

“In essence what it means is that we are trying to limit the exposure that a non-performing loan can continue to be charged interest, that is the whole essence.

“We are putting a cap on a non-performing loan, the interest thereof to be charged,” explained Namalomba.

However, Speaker of the National Assembly Catherine Gotani Hara has directed that the motion be moved next sitting of the House after review by the Business Committee.