Microfinance

Purpose

 This product is offered to a wide range of micro entrepreneurs who are involved in trade, service and manufacturing activities.

It can be used for acquisition of fixed assets and working capital needs of existing businesses. The facility is designed to assist the microenterprises with expanding the production capacity of their businesses.

Quick Facts

  Minimum loan size

TJS 900 / USD 100

  Maximum loan size

TJS 90,000 / USD 10,000

  Maximum loan size for rural areas

TJS 90,000 / No USD lending in rural areas

  Minimum loan term

  • 3 months for working capital loans

  • 6 months for fixed asset loans

  Maximum loan term

  • 24 months for working capital loans

  • 36 months for fixed asset loans

  Guarantor

Guarantor is required for loans above TJS 9k. The full financial analysis of the guarantor is required

  Collateral

Collateral is required for loans above TJS 9k

  Grace period

  (only principal amount)

  • 2 months for working capital loans

  • 4 months for fixed asset loans

  Currency

TJS and USD

  Interest rates in TJS

 29% - 35% Interest rates are stated annually

  Interest rates in USD

  16% - 25% Interest rates are stated annually

  Discounts

Borrowers may be offered a 1% discount if they open an FMFB deposit account and access and service their loan amounts through it

  Early closure

Allowed with the condition to formally report but no penalties as per the NBT requirements

How to Apply

Interested clients should consult with the nearest branch or banking service centre.

Clients should bring with them the following documents:

Х Copy of a valid passport
Х Tax Identification Number (TIN)
Х Two recent passport size color photos
Х Business investment plan
Х Patent or business license
Х List of items being pledged as collateral

Benefits

Х Flexible product terms that allow micro-enterprises to tailor a solution to best meet their financial capital needs
Х Attractive interest rates with the potential for further discount if the customer opens an FMFB deposit account and services their loan through it
Х Generous grace period to provide sufficient time for procurement of working capital or purchase and installation of fixed assets
Х Transparent and collaborative loan application process that is rooted in integrity and customer protection principles