What we do
Currently our Lending Policy and Procedure manual that has been approved by Ministry of Industry, Trade and Investment, allows us to offer four types of loan products:
• Working Capital Loan; Categorised into two sub-products (Group Loan and individual Loan)
• Housing Microfinance Loans
• Emergency Loan
• Agribusiness Loan.
Our Activities have been stressed much in three products only, working Capital Loan (Group Loans), Agribusiness Loan and Emergency Loan.
Working Capital Loan (Group Loan)
This product has been the main product offered; we refer this product as “Basic Loan”. More than 90% of our member customers use this product. The majority of members continue with this basic loan, cycle after cycle, to meet all their credit needs in a satisfactory manner. The purpose of the basic loan is to finance income- generating activities. Features and details of the Basic Loan include:
a. The Loan for financing existing business or income generating activities and not start-up business
b. Eligible borrower should be ready to join and form a group of self- guaranteed members
c. Interest rate: 18% p.a on declining loan balance, the interest is paid simultaneously with a portion of the principal.
d. The minimum loan amount is TZS 200,000 and the Maximum loan amount is TZS 5,000,000. The loan amount is determined by cycles; Cycle 1
(200,000-500,000), Cycle 2 (500,000-1,000,000) and Cycle 3 (1,000,000- 5,000,000). However the loan sizes are subject to review time after time based on the demand of the product, experience and financial capacity of the firm.
Eligible borrowers should be eighteen (18) years and above, Micro entrepreneurs who either live or work in areas that are within reach from our office.
This loan product is similarly done in form of groups designed for poor farming groups, it only differs on period of repayment. In this category the repayment is done during the harvest period. The interest charged is 9% for six month and 18% p.a (declining loan balance).
This facility targets the employees with short term liquidity crisis but expecting reliable future cash such as salary or gratuity. The maximum loan in this product is TZS 1,500,000 and the maximum repayment period is three (3) months and this loan has to be guaranteed by the employer. The interest is 1.5% per month (Declining Loan Balance).