TIB offers structured loan schemes aimed at assisting small enterprises and individuals achieve their goals. The loans are processed by TIB’s Small Business Unit (SBU)
TYPES OF LOANS:
The small loans include the following categories:
Personal Loans – consumer loans extended to employees supported by letters of undertaking or guarantees by the employers.
Individual Loans – Loans extended to individuals for the purpose of investing in existing businesses proven to be viable. They are usually supported by first class legal mortgage over property (preferably a building with a title deed) pledge of share certificates of blue chip companies listed on the DSM Stock Exchange and chattel mortgage.
Loans Secured by FDRs – Loans supported by Fixed Deposit
receipts (FDRs) issued by the TIB branch.
Company Loans - Loans to sole proprietor, secured as per Individual Loans above and /or debentures on stocks and debtors.
General Terms and Conditions for Small Loans:
- Employees of reputable companies which have been pre-approved by the bank.
- Small business enterprises or SEs, which have sound on going businesses with acceptable security cover and good cash flows.
- Individuals with acceptable security and good cash flows.
- Individuals or businesses that have fixed deposits with TIB Branch.
- Loan amounts to single borrowers are a minimum of TZS 1 million and maximum of TZS 30 million.
- Facility Fees are payable upfront at the rate of 2.5 % of the loan amount, minimum TZS 100,000 or USD 100.
- Loan tenures for personal borrowers are for maximum of 2 years while for business entities the maximum is 3 years
- Interest rates chargeable are reviewed regularly. Presently the applicable rates are:
- For loan tenure of one year, interest rate is 18% p.a.
- For two years loan tenure, interest rate is 20% p.a.
- For three years tenure, the interest rate is 21% p.a.