Tanzania: NMB to Issue Loans to Farmers' Payable After Every Harvest

By Daily News Reporter in Makambako

IN efforts to support farmers, NMB Plc has strategised an initiative to provide loans which they will be required to pay back after harvesting.

Making the revelation at Makambako, NMB Head of Business Banking, Alex Mgeni said the bank will continue to support farmers and the business community, especially petty traders to grow and sustain their business by providing them with friendly loans.

Mgeni, while talking to different groups of farmers and entrepreneurs from Njombe, Iringa and Mbeya regions further noted that once they use the loans with pieces of advice from financial institutions, their businesses will sustain them and equally raise the country's economy.

He said the bank has been listening to their opinions, that is why they were being offered loans with low interests, whose remittance becomes affordable and allow them to make profits.

Mr Mgeni added that through the opinions collected from different customers like farmers, the bank has been improving the loans services according to the situations and market dictations, so that paying back becomes flexible.

On his part, NMB Senior Relationship Manager Business Banking, Wogofya Mfalamagoha said they are in advanced stages of consultations with the Ministry of Lands, Housing and Human Settlements to see if every Tanzanian can get a loan from the bank.

He said the bank also issues loans for different items, including tractors, harvesting machines and wood processors with low interests and paid back within three years, where a farmer also pays yearly after every harvesting season.

He said the bank will also issue farmers with loans to build granaries, where they can store their produce after harvesting, while waiting to transport them to the market.

While in Mbeya, the bank organized a forum and met the business community in the area, where Mr Mgeni and his host, Mbeya Regional Commissioner, Albert Chalamila encouraged the traders to diversify their businesses and take loans to make them grow.

While addressing the meeting, the RC noted that many traders in the country do not have a culture of keeping records, hence fail to take loans from the banks.