Bank announces reduction in lending rates starting April

By DAILY NEWS Reporter

BancABC yesterday announced that it will reduce lending rates to its customers starting April 1, this year to easy the repayment burden and increase borrowing to existing and new customers.

Speaking in Dar es Salaam, the BancABC Managing Director, Mr Dana Botha said they will be reducing their lending rates for term loans, over draft and mortgages for customers of a good standing. He said the bank has decided to act in line with the Central Bank (BOT) monetary policy. “Last year, most banks experienced liquidity challenges which ultimately affected their lending capabilities.
For a couple of months now the government through BOT has stepped up and has been advocating the reduction of lending rates from Commercial Banks through reducing regulatory requirements such as Statutory Minimum Reverse, Discount rates, Treasury Bills and lending to banks at a lower rates,” he said.
He added: “This has enabled lending to be more affordable for Individuals, SME’s and Corporates borrow consequently enhance / boost their businesses with the aim of improving the business economy and we are glad to be amongst the first banks to announce this move.”
According to Mr Botha, their customers will now enjoy new or renewed loans at much more affordable payback rates. “We believe more customers will now come knocking at BancABC because of this new move,” he said. According to Dana the new measures by the govern-ment will stimulate business growth by encouraging banks to lend rather than invest in Treasury and government bonds and this will attract our customers in borrowing and increase quality of life and business growth. T
he bank's Head of Retail and Commercial Banking, Joyce Malai said that BancABC serves over 60,000 retail customers with different products, with this new move it gives us an opportunity to cross sell and attract even more products per customer with a key focus on more affordable mortgage rates which have been a cry for many middle class Tanzanians