Customers to enjoy CRDB’s personal loans at 16pc rate

Dar es Salaam. CRDB Bank yesterday slashed its interest rates on personal loans further to 16 per cent as the country’s largest lender by asset size seeks to net an increased number of more salaried borrowers.

This is the second time in less than one month that the bank is reducing its interest rates on personal loans.

On May 11, CRDB reduced its interest rates on personal loans from 22 to 17 per cent before cutting it further to 16 yesterday.

Announcing the latest rate cuts in Dar es Salaam yesterday, the CRDB managing director, Dr Charles Kimei said the aim was to ensure that an increasing number of Tanzanians go for loans, a development that, he said, would stimulate economic activities in the country.

“High interest rates have been discouraging many Tanzanians from going for bank loans. I am glad to announce here today that we have finally found a lasting solution to their long term grievance…We are today cutting interest rates on personal loans from 22 to 16 per cent,” he said.

Under the newly announced arrangement, one can borrow up to Sh100 million, up from Sh50 million while the repayment period has been extended from five to seven years.

The loan, according to Dr Kimei, will be obtained within one day through the bank’s branches.

“We are also introducing a loan buyout system. We will buy the loans that some clients have with some lenders so that they can also get a chance to borrow from CRDB,” he said.

The loans, said, Dr Kimei, will be issued to all salaried employees in the public and private sectors. An eligible loan applicant must have a monthly salary of at least Sh200,000.