Group loans made available are generally for business development and therefore expected to generate income in an existing business. A sample case of a group loan would involve 10-35 business people, with experience working together, forming a loan group and acting as guarantees to one another. The group receives training from a Loan Officer, covering all areas of the company’s lending methodology, basic topics on loan use, and business plan. This training also would cover all steps necessary in the groups’s formation and procedures.
The initial amount of loan for every member in the group varies from Tshs. 50,000 to 350,000 and there is a maximum loan amount of up to Tshs. 4,000,000. The size of an indivudals business determines the amount of the first loan. Subsequent loans may be established, based on the customer’s repayment history, the amount of savings put in, attendance and general conduct. Loans can be made for a period of three to twelve months, with weekly, bi-weekly, or monthly payments.
Group loans are reliable and processed quickly. Loan terms are flexible, affordable to most low income earners and rural poor, and we offer a top up loan. Informal loan security is accepted and repayment can be made through a variety of methods.
Approval of a group loan requires that business are located within Tujijenge Tanzania branch designated area. Applicants must have a minimum of six years experience in the business, loans are not made available for start-ups. Successful applications will receive group guarantorship, movable collateral may include vehicles, household property or business assets and immovable collateral may include land. Approval of a loan will involve inspection of collateral and business assessment. The loan carries no application fee.