Tanzania: CRDB Slashes Interest On Loans for Freight Clearing

CRDB Bank and the Tanzania Business Community yesterday inked a deal where the lender slashed by 2.0 per cent on the interest rate on loans charged for port freight clearing.

For the lender to facilitate the deal-Post Import Financing Solution-cut interest rate charged on freight clearing loan to 16 per cent from current 18 per cent.

The agreement is structured to assist importers to pay and clear their consignment at the port on time and reduce dwell time challenges and ultimately minimise clearing costs.

CRDB Chief Commercial Officer Dr Joseph Witts said they segmented the loan as port cargo loans from other normal loans to freight to give importers the much-required financial relief.

"The loan is issued according to the rate of payment of cargo at the port where a merchant can pay customs duties, port costs and shipping agent on time and without delay," Dr Witts said during the signing ceremony.

The loan will only be issued to Tanzania Business Community members and is payable within three months. The CCO said the loan's interest rate may further taken down depending on the response, trust and repayment phenomenal shown by the community members.

Also, the bank said loan issued without any collateral and the process takes only seven days upon submission of the loan application. In addition, tax payments and port costs will be paid directly to the relevant institutions including TRA, TPA or shipping agency.

"This service will support the government's efforts to collect taxes on time and improve the country's economy," Dr Witts said. The other aim is to provide relief to the business community members especially after their activities were hit by coronavirus pandemic challenges.

"It is my hope that the loan will be a great solution for importers and bring down port costs due to delays in paying import duties," he said.

The Tanzania Business Community, Chairman, Pastor Silva Kiondo, thanked the bank for recognising the importance of importers and designing a service that will eliminate challenges related to cargo clearance at the ports.

"Our goal is to see our members do their business without any inconvenience. I call on members to seize the opportunity to improve their business," said Pastor Kiondo.