SME Financing

The bank offers a range of SMEs products to meet its development financing mandate to facilitate and support SMEs business growth. The products aim to increase and expand access to finances by SMEs business as well as improve business operations and working environment to enhance growth and prosperity.

The SME products offered by the bank are: -

• Direct lending to SMEs registered entities
• Program lending/Industrial infrastructure development
• Wholesale lending (for on-lenders)
• Technical assistance and advisory services

Direct Lending

TIB provides direct finances to registered SMEs business (as Limited Liability Companies or registered Cooperative societies) with good business track records

Program lending/Industrial infrastructure development

Program lending focuses on financing development of business parks or industrial parks in collaboration with Local Government Authorities (LGAs), State Owned Enterprise (SOEs)/public institutions (such as SIDO, EPZA, and Crop Boards). The objective is to set up public infrastructure, such as industrial parks, business parks, public markets, warehouses, and infrastructure in general so as to provide SMEs with better working environment/business premises for renting.

Wholesale Lending

TIB provides credit funds to financially sound community banks, microfinance institutions, commercial banks and other similar organizations for “on – lending arrangement” to their clients.

Technical Assistance and Advisory Services

The bank provides capacity building services in terms of training to equip SMEs in areas of business management skills, financial management, establishment of market linkages etc. also advisory service aims to assist SMEs to improve business management operations. Advisory service is provided to start-ups and on-going SMEs business on good business practices and other types of consultancy services.

Benefit and Features

The SME products offered by the bank are: -

• The bank offers flexible repayment period to match with the business cycle/ projects cash flows.
• SME loan offered are for financing capital investments and initial operational capital
• Supports private and public institutions new investments/ business expansion
• The SME products enables private and public institutions to achieve the desired projects outcomes
• The bank provides technical assistance in project preparation to public institutions.
• Long-term loan with repayment period of up to 10 years which is crucial for investment.
• Grace period for principal repayment is provided depending on the nature of the project.
• The borrower contributes equity of at least 40% of the total investment costs in terms of both existing and additional investment.
• The bank offers affordable Interest rates.