Dar es Salaam. Women have been advised to clearly understand the purpose of taking a loan before borrowing, with experts noting that credit should be used as a tool for economic advancement rather than consumption.
CRDB Bank Business Development Manager Mary Mponda made the remarks on Friday March 6, 2026 during a breakfast meeting organised by CRDB Bank in collaboration with Mwananchi Communications Limited (MCL) to mark International Women’s Day.
Speaking at the event, Ms Mponda emphasised that borrowing should always be guided by a clear plan and a well-defined objective.
“A loan is not something you take simply to buy furniture. You must know exactly why you are borrowing,” she said.
“It is also important to borrow from institutions that are transparent and capable of guiding you on how the loan should be used, your ability to repay and how to manage it properly. That is why banks often provide financial education to help borrowers understand how to use loans responsibly and repay them," she added.
Ms Mponda also urged women to carefully examine the interest rates attached to loans before committing themselves.
“It is important to clearly understand the interest rate being offered. In banks, you may be told the rate is about 20 percent, but that is usually calculated annually,” she explained.
“However, some informal lenders may say the rate is four percent without clearly stating whether it is charged monthly or annually. When calculated, such loans can cost as much as 48 percent per year, meaning a borrower could pay up to Sh1 million in interest within a year.”
She further warned against borrowing from lenders operating outside the regulatory framework of the Bank of Tanzania (BoT), noting that such arrangements could expose borrowers to high risks and unfair lending terms.
Ms Mponda also encouraged women to cultivate the habit of tracking their monthly expenses in order to manage their finances more effectively.
According to her, keeping a record of monthly expenditures helps individuals determine how much income should be allocated to savings, household needs and contributions to community or social groups.
