Mwanga bank aims at massive expansion

What you need to know:

Mwanga Community Bank Limited (MCBL) has its branches in different parts of Kilimanjaro Region. Kindly tell us the bank’s expansion plans away from Kilimanjaro – if any.

Community banks were established to enhance financial inclusion through offering affordable financial services to the community which consists of large number of adult population not served by the formal banking industry. All banks and financial institutions charge interest on loans based on Cost of Funding, risk premium, administrative cost and profit margin. Banks including MCBL could charge low interest rate if it could lend out of mobilized savings from customers but due to high demand for loans banks are borrowing from financial market at high interest rates ranging from 16 to 20 per cent. If clients could repay their loans according to repayment schedule could lower risk premium which is pegged at five to seven per cent but many clients default in repayment which increases risk coast to the banks and therefore increases interest rates.

Mwanga bank aims at massive expansion

What you need to know:

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