NMB eyes ‘Bodaboda’ riders with Sh5bn in loans scheme
What you need to know:
- The money, set aside the NMB Mastaboda loan initiative, is geared towards helping the youth who are engaged in the motorcycles business popularly known as ‘Bodaboda’ so that they can grow their businesses and contribute to the country’s economic growth.
Dar es Salaam. Bodaboda riders now have every reason to boost their incomes as NMB Bank Plc sets aside Sh5 billion for lending to them.
The money, set aside the NMB Mastaboda loan initiative, is geared towards helping the youth who are engaged in the motorcycles business popularly known as ‘Bodaboda’ so that they can grow their businesses and contribute to the country’s economic growth.
Available data shows that Tanzania was home to over two million Bodaboda taxi riders who would benefit from the initiative and join the banked segment of the society.
The minister for State in the Prime Minister’s Office (Policy, Parliamentary Affairs, Labour, Employment, Youth and the Disabled), Ms Jenista Mhagama, graced the launch of the NMB Mastaboda loan initiative in Dar es Salaam at the weekend during the event that was also attended by about 300 ‘Bodaboda taxi’ riders.
To qualify for the loan, a Bodaboda rider will be required to open an account with NMB Bank Plc.
Apart from operating the account for three months consecutively and being a member of the of bodaboda riders’ associations, one will also be required to possess a National Identification card.
Speaking during the event, Ms Mhagama said the loan initiative was complimenting government efforts to empower youth so that they can actively participate in Tanzania’s economic growth efforts.
“It is my wish to see your business growing from owning bodaboda to possessing motor vehicles through which you can generate more income,” she said. Ms Mhagama told them, however, to observe financial discipline and hard work as the key secretes in boosting and expanding bodaboda business to the next level.
She urged NMB Bank Plc to extend the initiative to other parts of the country. Earlier, the chief executive officer for NMB Bank Plc, Ms Ruth Zaipuna said the launch of the Mastaboda loan was the response to Minister Mhagama’s request made in 2019 when she officiated at an event to launch Mastaboda QR.
The amount set aside for the loans could rise depending on demand.
The initiative, she said, would be extended to other regions. The NMB Bank retail banking chief, Mr Filbert Mponzi said the bank has trained and equipped over 5,000 Bodaboda riders and that it was now targeting to reach over 75,000 Bodaboda riders countrywide in one year in order to enhance efficiency in their business.
