Tanzania: Crdb Slashes Worker Loan Interest to New Low

By Abduel Elinaza

CRDB has slashed salary loans interest rate to 14 percent to enable workers to realize their ambitions under a new campaign at a time when market rates are over 17 per cent.

The bank's new interest rate is the lowest in the market and came at time when the economy striving

to flatten the Covid-19 curve while workers are struggling to cope up with post pandemic realities.

CRDB's Director of Retail Banking, Boma Raballa said under the campaign "Jiachie Utakavyo" salaried workers have more room for choosing on payment period to whether pay between one to seven years.

"The rate slashes give workers a broader spectrum of borrowing at lower cost, longer time and freedom to choose what they want," Mr Raballa said adding while reducing payment burden to beneficiaries.

The initiative, according to CRDB, also allowed a beneficiary-from public or private sector-to choose a loan term that is in line with his/her a need and interest rate. The loan ceiling amount is 100m/-.

"A customer has the freedom to choose the payment period from one, two, three until seven years," the director said.

The interest rate, however, carters for salaried workers in public or private sectors the interest is calculated on reducing rate method.

Commenting on the bank improvements to salary loans, Head of Consumer Banking, Stephen Adili, said they are recognising the huge contribution of public and private sector employees to the economy.

"We recognise the challenges we have faced during this [coronavirus] period. And we have been at the forefront to simplify these challenges in every aspect.

"This 'Jiachie Utakavyo' campaign is part of the appreciation of all employees, but also to help them achieve their goals," said Mr Adili.

CRDB Senior Manager Personal Banking, Ms Farida Hamza used the launching soft ceremony to wooing workers to seize the opportunity to enable easing person financial stress. The loans are available 24 hours after application.

"These loans are not only for CRDB customers but for all employees in the country. The bank also buyout employee loans in other banks," Ms Farida said.

The loan application, according to CRDB, is simple since applicant needs national recognizable IDs, salary slips for three months and employment contract and employer letters.

This is the second time CRDB cut down borrowing interest rate. The first time was in May 2018 when reduced the rate to 16 per cent from 22 per cent to reduce borrowers' payback burden.