Dar es Salaam. NMB bank PLC has announced the reduction of its loan interest rate and extended the repayment period with the aim of attracting more customers.
The interest rate on loans, which took off from May 24, has gone down to 17 per cent from the previous 19 per cent.
The bank has also extended the repayment period for loans from a maximum of 60 months to 72 months for employees from private and public sectors.
The NMB Managing director Ineke Bussemaker said the bank has taken steps towards creating a solution for workers whose salary goes through NMB accounts.
"For a long time, customers have been asking for reduction of interest rates and extending time for loan repayment" she said.
The banks has also entered an agreement with higher education students loans board (HESLB) to takeover loans to facilitate for those who still owe the loans board.
“We will take the burden by clearing the loans and give them a longer repayment period" Said Bussemaker.