Credit rating agency launches new tool for risk assessment

Dar es Salaam. Tanzania’s first credit rating agency, Icra Rating Agency Limited, has launched a tool that will simplify the lending process, empowering institutions to make confident and informed decisions.

Dubbed the “Icra Scorecard,” the service serves as a tool for assessing the initial risk profiles of both retail and corporate clients seeking credit and borrowing services.

The company said in a statement that the tool will be a game-changer for lenders, including microfinance institutions (MFIs), banks, savings and credit cooperative societies (Saccos), insurance, and corporations.

“Our goal is to empower lenders worldwide with the insights they need to succeed in the dynamic world of finance,” said ICRA’s chief executive officer, Mr Sahil Bansal.

According to him, by leveraging the tools, financial institutions can expedite lending processes, optimise loan terms, and minimise risks effectively.

Whether situated in bustling urban centers or burgeoning economies, financial institutions everywhere can now access credit assessment tools without barriers.

“We believe that access to credit should know no boundaries,” he said, adding that the company’s scorecard will pave the way for a future where financial empowerment is within reach for all.

Icra Rating Agency Ltd has forged partnerships with local entities such as the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), Tanzania Association of Microfinance Institutions (TAMFI), Credit Info, and Tanzania Institute of Bankers (TIOB).

In a previous interview with The Citizen, Icra-Tanzania director, Mr Hassan Mansur revealed that through TCCIA and TAMFI, potential corporations and microfinance institutions can reach out to the agency through their respective platforms.

By utilizing Icra credit ratings and reports, these organisations can approach both domestic and international banks and investors to receive fair evaluations for debt and equity financing.

“Icra, in collaboration with TIOB, aims to educate and provide technical knowledge through physical events and webinars on various topics related to the financial sector,” said Mr Mansur.

“Icra has a local presence with skilled staff who understand the local market practices, risks, and opportunities. Combining local expertise with the centralized credit department’s international experience provides investors with the comfort they need to make their decisions,” he previously said