The Best Loans in Tanzania

Compare the best options on the market and choose the one which best adapts to your day-to-day needs.

Further Below: Our Guide to Loans in Tanzania, Everything you need to know.

Standard Chartered Bank

  • Flexible repayment period 
  • Competitive interest rates
  • Scheduled equal monthly installments 
  • One can borrow or even top up a loan
  • Friendly terms and conditions
  • Credit life insurance Favorable loan conditions 
  • Quick application process
  • Loan insurance cover disability, death, or retrenchment
  • Allows debt settlement through the Balance Transfer option 

Tanzania Commercial Bank

  • Affordable interest rates
  • Repayment period of up to 96 months.
  • Mentorship programs for retirees
  • Pensioner’s loan does not require collateral
  • Loan insurance cover death
  • Top-up loans are allowed
  • Doesn’t have an age limit
  • Interest rate is on reducing balance
  • Fast approval process 

Exim Bank 

  • Loan amounts of up to 15 million
  • Repayment period of up to 24 months
  • Competitive interest rates
  • Fixed monthly installments
  • Minimum arrangement fees
  • Available to non-Exim Bank clients
  • Creditworthiness considered
  • Stable income is required 
  • Installments under 40% of the monthly net salary

Best loans in Tanzania, All You Need To Know:

Take a quick read to get a hang of how to employ a loan that’s most consistent with your financial situation. At FUNDGECKO, we take time to marshal the most reliable information and news updates that are relevant to informing your financial decisions. In that way, your loan application process is seamless and time-conscious.

Scroll down to know all it takes to hire a financial product in Tanzania and what factors to consider before hiring one.

Quick Summary:

  • Online mini-credits grant Tzs 20,000 to new borrowers
  • Online mini loans are often hired to solve small economic contingencies
  • They generally are small in amount and have high interest rates
  • The amount is repaid once and mostly after a month
  • Online mini loans have a fast online application process
  • The approval of the application happens in minutes
  • Be sure of your ability to repay the loan under all the loan conditions before taking out the loan

What are loans and how do they work?

A resource or a specific sum of money that is provided to a borrower with the understanding that they would repay it later is referred to as a loan. The lending and borrowing of loans are subject to a set of rules and regulations that vary by country and, to some extent, per lender. The qualifying requirements for loans might vary depending on several things. These elements include, among others, the loan’s size, cost, conditions of repayment, and additional costs.

Therefore, the lender will send you documents outlining the loan’s terms and conditions before you take out a loan. To be prepared for any upcoming charges, be sure to take careful note of even the smallest things. Different loan types are available in various loan sizes. Online mini loans, for instance, offer tiny loans that are repaid after a month. Secured loans, on the other hand, typically lend enormous sums and have protracted payment terms. 

Hence, be sure to familiarize yourself with your financial situation to get a loan that will best suit you. 

According to the Bank of Tanzania ( Central Bank), the average lending rate is quite stable and has maintained an average lending rate of 5% in November 2022 which is affordable to Tanzanian residents.

What we should know before taking out a loan in Tanzania

  • Before thinking of conducting any legal transactions in Tanzania, you’ll be required to have a Taxpayer Identification Number (TIN). Whether living in Tanzania or native, this number is important when undertaking legal transactions. Hence, failure to have it makes the loan application process unsuccessful.
  • With good credit systems, most Tanzanian banks have online loan application platforms which makes funding easier. Many banks have their websites in English and Swahili to accommodate international applicants. The best banks in Tanzania are equally ranked on an average global scale position.

When is it advisable to apply for loans?

Online mini-credits are our first option whenever faced with a financial emergency. The loans help us with quick money in a fast, hassle-free, and convenient way. However, this type of credit will only favor you under certain conditions. Hence, it’s important to have a 360-degree knowledge of the loans and when you need them before making any decision.

When is it advisable to apply for online loans?

  • When in need of a quick financial injection
  • When the need comes once and recurring
  • When you can comfortably repay the whole loan amount under the loan conditions
  • When we know everything about the loan and its conditions
  • When we know the whole amount we’re supposed to repay including interest and other fees

When should we not apply for online loans?

  • The need is recurring
  • The purpose is not urgent and can wait for our next pay
  • We’re not sure of our ability to assume payment of the loan
  • We don’t have an idea of how the loan works
  • We’re not aware of the whole amount of money we’ll be required to repay

Using the above-mentioned parameters will help us quickly assess our financial situation to determine which type of loan we need. 

How much money can I get with mini-credits?

Due to their fast nature and fewer eligibility criteria, mini loans come in handy during small economic emergencies. New borrowers will always get small loans at first because their trust level with the lender is still low.

New Clients:

Up to Tzs 20,000

Existing Clients:

Up to Tzs 50,000

Older borrowers of online mini loans may enjoy bigger loans with reduced rates because the lender already trusts their repayment ability. These borrowers have taken out a loan before and reimbursed it without problems and under the agreed terms and conditions. 

Requirements to access loans in Tanzania

The process of taking out a loan is always successful if only the borrower meets some set requirements. While these requirements may not be so strict for online mini loans, a borrower will still be required to meet each of them. With other loan types, the requirements are more strict because they are associated with bigger loan amounts and longer repayment periods, etc.

So, what requirements must you meet to access a loan in Tanzania?

  • Be of legal age. Some banks will finance you at 18 years, while others will only lend to borrowers above 21 years. Likewise, entities in Tanzania will not approve loans to applicants above age 75.
  • Have a good credit history. Before giving you finances, most lenders, if not all, will assess your level of debt to determine whether you qualify for their loan. 
  • Have a stable source of income. Your lender will need to be sure of your ability to repay the loan. Hence, having a stable source of income will mean that you’ll spare some funds from your income to repay the loan. Some lenders, however, will only finance you when your salary isn’t unreasonably low while others don’t mind financing you without a fixed income.
  • Have a Tanzanian residence permit. Tanzania is known for financing both natives and ex-pats provided they meet the set requirements. However, lenders will only finance applicants that are currently living in the country. Moreover, consult with the entity to know for how long you’re required to be holding the residence permit.

To most entities in Tanzania, the above 4 requirements have to be met before qualifying for a loan. Other entities, however, may have more requirements than these. Hence, consult with your lender to know what requirements they’ve placed for their applicants.

Documents to be submitted when requesting a loan

It’s not enough to feel like you meet the requirements for accessing loans in Tanzania. Your lender will need proof that you qualify for the loan. That’s where documentation comes in. For the online mode, these documents are submitted online either by uploading the documents, sending via email, or scanning them. For the physical application, lenders will have you drop the documents at their offices or send them via a courier.

  • Have a national identity card, passport, or any other valid form of identity
  • Have a permanent or temporary residence permit card
  • Have the last two or three payslips. You may need to present a university enrollment card if accessing a student loan, or a pension certificate if you’re a retired applicant.
  • Have a TIN
  • Bank account statements

The above requirements are the most common in Tanzania. However, some entities tend to have more requirements depending on the loan type and other factors. Most lenders in Tanzania have online platforms through which borrowers make their applications. Hence, the process is fast and hassle-free.

How to take out loans online step by step?

Steps to contract a mini loan:

  1. Choose the amount and repayment term
  2. Fill in the form
  3. Send the documentation
  4. Read and sign the contract

In Tanzania, online mini loan providers process the funds fast, in a period not exceeding 20 minutes since every step of the application process happens online including signing the contract. Below are the four steps you’ll be required to follow:

  1. Choose the loan amount and your preferred repayment term. At this step, the borrower will be required to choose wisely, considering their ability to repay the loan, and after how long. Small loans have shorter repayment periods than big loans. 
  1. Upon receiving the application form online, provide the most genuine and accurate personal data. The form will have blank fields that require you to add your name and surname, date of birth, identification number or passport number, etc. Be sure to fill out all the blank fields. The information you provide here must not conflict with that in your documentation.
  1. Verification. The lender will take time to compare and contrast the information you provide with what’s in the documents and bank statements. Most applications are rejected at this point. If everything is correct, the lender will approve your application and send you contractual documents.
  1. Upon receiving the contractual forms, read between the lines to get a hang of all the contractual terms and conditions. Note down any future changes, fees, or costs, to be sure of what you’re signing up for.

After signing up for the contract, the entity will release the funds to the borrower.

About this page, our methodology

What this page is for: We aim to help you find the best credit facilities for your needs. So, we want to show you what personal loans are, their differences and similarities, the deals offering the best value, and how to choose the best deal. We do this by evaluating and rating loan products. We keep updating the information on our website to ensure you access the most recent information.

 Source: The information herein has been sourced from Tanzania’s Ministry of Finance and Planning portal, Bank of Tanzania data, bank and financial institutions websites, and other reliable sources.

 Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources

 About FUNDGECKO: We are an online comparison website. Our goal is to make it easy for users to apply for loans by comparing the best options available and providing them with the information they need in advance.

 Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.

You might also like
Tags:

More Similar Posts

Menu