Bank of Tanzania tasked to review loan policies
What you need to know:
- The reviewed policies should be more friendly and supportive to the small scale business people, including farmers
Arusha. Bank of Tanzania (BoT) has been urged to review policies governing loan issuance from the financial institutions.
The reviewed policies should be more friendly and supportive to the small scale business people, including farmers. “This will enable those advanced with loans to service them without much difficulty,” said Monduli district commissioner Frank Mwaisumbe.
He made the appeal here during his visit to the central bank’s pavilion at the Themi Nane Nane grounds, the venue of Farmers’ Day.
He said, currently some small business people getting loans had to repay them only after one month after being advanced with the cash.
“This is a burden to them because this is too short a period for their businesses to start making profit,” Mr Mwaisumbe pointed out.
The DC insisted that small and medium entrepreneurs have to benefit from their income generation activities and this has to start with access to soft loans.
“It is high time for BoT to consult with the banks and other financial institutions on the matter,” he pointed out during a media briefing.
He proposed long term repayment periods for the loans in order to enable the beneficiaries to make profit from their businesses.
He warned that tough and unfriendly loan conditions may force some small entrepreneurs to sell their assets such as houses in order to service the loans.
Earlier, central bank’s senior loan officer John Paul Matinde said they were in contact with the financial institutions on the issue.
He affirmed that BoT would ensure that loans advanced to small scale business people and other entrepreneurs were devoid of stringent conditions.
The Farmers’ Day activities, popularly known as Nane Nane, are taking place at the Themi grounds in Arusha at the northern zone level.
