Tanzania Commercial Bank disburses Sh300 billion as loans to small-scale entrepreneurs
What you need to know:
- TCB has established a dedicated credit department which manages both new and existing loans, conducting rigorous assessments to ensure the viability and repayment potential of each application
Dodoma. The Tanzania Commercial Bank (TCB) has disbursed Sh300 billion in credit to small-scale entrepreneurs since launching its loan programme last year.
Speaking during the bank's 57th staff council meeting held in Dodoma on Monday, December 9, Acting Chief Executive Officer Daniel Mbotto underscored the significance of this achievement.
He attributed the success to the implementation of key strategies, including the establishment of a dedicated credit department.
The department plays a pivotal role in managing both new and existing loans, conducting rigorous assessments to ensure the viability and repayment potential of each application.
It also focuses on securing guarantees as a safeguard against potential risks, aligning with the bank’s commitment to sustainable lending practices.
This department manages both new and existing loans, making sure to thoroughly analyze each one for viability and repayment potential.
“We are working with customers who have previously defaulted on loans, negotiating repayment plans or liquidating their collateral to restore the bank's capital and prevent further financial instability,” said Mr Mbotto.
He emphasised that TCB offers a wide range of loan products tailored to different customer needs.
These include loans for government employees with favourable interest rates, online services and loans for small, medium and large-scale entrepreneurs.
Furthermore, TCB collaborates with the Tanzania Agricultural Development Bank (TADB) to provide agricultural loans, with TADB offering guarantees prior to disbursement.
Mr Mbotto stated that interest rates for these loans range from nine percent to fourteen percent, depending on the loan amount.
He noted that this approach allows farmers to access loans at more affordable rates, reducing their reliance on predatory lenders.
“Our mission is to extend financial inclusion to all Tanzanians,” he added.
Addressing concerns about delayed loan approvals, the acting CEO reassured customers that the bank has streamlined its processes.
Loan applications for government employees are now processed and approved within two hours, with approvals completed on the same day the application is submitted.
For other customers, TCB has introduced a tracking system that allows the bank's headquarters to monitor loan applications and ensure disbursements are completed within fourteen days.
“We’ve made internal decisions faster, and we stay close to our customers to provide swift services,” stated Mr Mbotto.
He reaffirmed that the Sh300 billion in loans issued since the programme’s inception has positively impacted small entrepreneurs and contributed to job creation and economic growth in local communities.
Looking ahead, Mr Mbotto announced that TCB plans to expand its loan allocations to target small, medium and large-scale entrepreneurs by 2025.
During the meeting, the bank’s staff council secretary general, Mr Kolimba Tawa, shared that the discussions focused on the work plan and budget for 2025, as well as a review of the year’s achievements.
“We aim to ensure that all employees align with the bank’s strategic goals. With 1,200 TCB employees, this meeting gathered 70 representatives to advocate on behalf of their colleagues,” he said.
