Personal loans take a third of domestic credit, BoT reveals

Thursday November 14 2019

Bank of Tanzania (BoT) headquarters in Dar es

Bank of Tanzania (BoT) headquarters in Dar es Salaam. PHOTO | FILE 

By Mnaku Mbani @TheCitizenTZ news@tz.nationmedia.com

Dar es Salaam. Salaried and non-salaried individuals have continued to take the largest portion of loans from commercial banks, the Bank of Tanzania’s quarterly economic bulletin for the third quarter of this year shows the sector accounted for after a third of all loans.

The bulletin shows that personal and other services borrowed a total of Sh6.1 trillion during the quarter ending September this year, which was 33.3 per cent of all loans extended by commercial banks.

Trade was the second largest sector taking the big chunk of banks loans, 17.4 per cent of all domestic loans issued.

The bulletin published by Bank of Tanzania (BoT) has shown that trade borrowed a total of Sh3.24 trillion during the period ending September this year out of total lending of Sh18.5 trillion.

However, the amount was lower than Sh3.28 trillion or 18.1 per cent of all domestic credits extended to the economy during the second quarter ended in June, amounting Sh18.1 trillion.

The bulletin shows that manufacturing was the second largest receiver of domestic credit after borrowing to a tune of Sh1.9 trillion, which was 10.5 per cent of all loans.

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But, the amount was lower than Sh2.0 trillion borrowed by the sector during the second quarter of this year of 11.2 per cent of all domestic credit. The bulletin shows that agriculture, hunting and fisheries was the third largest credit recipients receiving a total of Sh1.6 trillion of 9.1 per cent of all credits issued during the period.

Other sectors of the economy which received a big chunk of banks loans include building and construction, which accounted for 5.7 per cent of Sh1.05 trillion as well as transport and communication, which borrowed Sh0.9 trillion or 5.1 per cent.

The bulletin shows that real estate and leasing followed after borrowing Sh0.8 trillion or 4.4 per cent of all domestic loans.