Azania charges women one percent monthly interest in new empowerment drive

Dar es Salaam. Azania Bank has started offering loans to women at one percent interest rate on a monthly basis, in its wider efforts to empower them economically.

All thanks go to the launch of a special account dubbed Mwanamke Hodari, an event that occurred over the weekend here in the city.

The bank’s managing director, Ms Esther Mang’enya, said the account, which one can open free of charge, is geared to address a challenge of capital that women are grappling with in their businesses.

“This account is specifically for women who have been facing difficulties in accessing loans due to conditions that are not in their favour,” said Ms Mang’enya.

She said a borrower stood a chance to borrow up to four times of her deposit.

She explained that the borrower will need to have collateral worth 25 percent of the loans as opposed to 100 percent required in commercial loans. 

In case the borrower met her demise or became ill to the extent of failing to pay back the loan, insurance would come to a rescue, according to Ms Mang’enya. 

There is no minimum balance required for the operation of the account, whose launch was graced by the Minister for Community Development, Gender, Women and Special Groups, Dr Dorothy Gwajima.  

“As a matter of fact, the account owner can at any time withdraw her money without a limit and charges,” said Ms Mang’enya.

Dr Gwajima, for her part, commended Azania Bank for being innovative enough to come up with the product that will positively impact the lives of women.

“It is high time women grabbed the opportunity for prosperity of their businesses,” she said.

She went on to add: “It is time for women to cultivate a culture of saving.”