Unit Trust of Tanzania (UTT), a government-owned investment institution, reportedly has launched UTT Microfinance, a microfinance unit that will charge 18 percent annual interest to borrowers and use mobile money platforms for the distribution and repayment of loans. UTT Microfinance offers loans sized from TZS 50,000 (USD 30) up to TZS 50 million (USD 30,800) for individuals and up to TZS 2 billion (USD 1.23 million) for companies. The institution has four loan products: (1) Niwezeshe, which is designed for shareholders of UTT; (2) Nufaika, which is intended for non-UTT members who are sponsored by a shareholder; (3) Biashara, which is meant for small and medium-sized businesses under self-guarantee; and (4) Taasisi, which is for small and medium-sized enterprises, savings and credit cooperatives and similar entities. Borrowers who are shareholders use their shares as collateral and may borrow up to “75 percent and 85 percent of their value…for Niwezeshe and Nufaika loans, respectively.” The repayment term for all loans is between six months and two years, and payments are collected monthly.
Financial information for UTT is unavailable.
By Charlotte Newman, Research Associate
Sources and Additional Resources:
AllAfrica: “Tanzania: UTT Throws Its Weight on Microfinance,” http://allafrica.com/stories/201304160415.html
MicroCapital.org story, March 21, 2013, “MICROCAPITAL BRIEF: Bank of Tanzania (BOT) Licenses Dunn & Bradstreet, CreditInfo Tanzania as Credit Bureaus,” https://www.microcapital.org/microcapital-brief-bank-of-tanzania-bot-licenses-dunn-bradstreet-creditinfo-tanzania-as-credit-bureaus/
MicroCapital.org story, February 5, 2013, “MICROCAPITAL BRIEF: National Microfinance Bank (NMB) of Tanzania to Establish 20 New Rural Branches,” https://www.microcapital.org/microcapital-brief-national-microfinance-bank-nmb-of-tanzania-to-establish-20-new-rural-branches/
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