Agri MSME Products
Overview
These are products designed for small and mediums enterprises which already exposed to conventional Banking and related services. CRDB has crafted a range of loan products for Agri MSMEs, depending on the customer profile, nature of transactions and business in general.
Transactional Based Loans
Transaction based credits are granted for a duration not exceeding twelve (12) months. These facilities are granted to finance a specific order/contracts. Deeds of assignment of proceeds from the order/ contract will be the additional security and orders/contracts to be financed shall be those from reputable institutions/employers with capacity and strong reputation of repaying debts.
Local Purchase Order Finance
Short-term transaction-based loan used to improve customer’s business working capital and cash flow prior to the fulfillment of a purchase order. POF allows a business to borrow funds against a purchase order or sales contract from its local buyer(s) by borrowing against a percentage of the value of the purchase order,
Parameter
Purchase Order Finance (POF)
Loan Amount
Up to 85% of supplier’s tax invoice value.
TZS. 10 Million or USD Equivalent
TZS. 2 Billion or USD Equivalent (Where exposure exceed TZS. 2Bn the Bank will decide on merit side)
Currency
TZS or USD (depending on the repayment source).
Loan Tenor
30 to 180 days (Depending on the terms of LPO or Sales Contracts)
Loan Purpose
To finance the confirmed purchase orders or sales contracts.
Pricing
Pricing Policy for short-term loans will apply (where borrower provides collateral interest rate discount of 1% shall apply)
Repayment
Interest will be serviced monthly, quarterly or in bullet payment depending on borrower’s business cash flow
Principal amount will be settled upon receipt of payment from client/employer/buyer either monthly, quarterly or in bullet payment depending on payment terms.
Insurance
Key-man insurance naming CRDB as the first loss payee must be in place.
- Very good existing and new borrowers with good track records in Account conduct and credit history
- Legally registered in Tanzania with previous successfully executed purchase orders or contracts from reputable Buyer/Client/Employer
- Acceptable LPO/Contracts are those from reputable organizations that have the habit of settling their obligations within acceptable timeline.
- LPO/contracts with payment terms below 180 days
Invoice Discounting (IDF)
Short-term transaction based loan used to improve Agribusiness customers’ working capital for the aim of bridging the gaps on business cash flow needs. IDF allows agribusiness client to borrow funds against confirmed unpaid invoices raised either after partial or complete implementation of contract that will be paid by employer or Client in the near future and within the prescribed time and terms and conditions between contract employer and Borrower
Parameter
Invoice Discounting
Loan Amount
Up to 75% of raised Invoice value excluding tax.
Minimum TZS. 10 Million or USD Equivalent
Maximum TZS. 2 Billion or USD Equivalent (Where exposure exceed TZS. 2Bn the Bank will decide on merit side)
Currency
TZS or USD (depending on the repayment source).
Loan Tenor
30 to 90 days (Depending on the terms of certificate raised and LPO or Sales Contracts)
Loan Purpose
To finance working capital gap for underlined businesses
Pricing
Pricing Policy for short-term loans will apply (where borrower provides collateral interest rate discount of 1% shall apply)
Repayment
Interest will be serviced monthly, quarterly or in bullet payment depending on borrower’s business cash flow
Principal amount will be settled upon receipt of payment from employer either monthly, quarterly or in bullet payment depending on payment terms.
Insurance
Key-man insurance naming CRDB as beneficiary must be in place.
- Very good existing and new borrowers with good track records in account conduct and credit History.
- Legally registered in Tanzania with previous successfully executed purchase orders or contracts from reputable Employer
- Acceptable invoices to be discounted are those from reputable organizations that have the habit of settling their obligations within acceptable timeline.
- Invoices with outstanding payments above 60 days are not eligible for financing.
Certificate Discounting (CDF)
Short-term transaction-based loan used to improve working capital for the aim of bridging the gaps on business cash flow needs, especially for contractors. CDF allows Agribusiness customers to borrow funds against unpaid Certificates raised either after partial or complete implementation of contract that will be paid by employer or Client soon and within prescribed time and terms and conditions between contract employer and Borrower
Parameter
Certificate Discounting
Loan Amount
Up to 75% of raised Certificate/Invoice value excluding tax.
Minimum TZS. 10 Million or USD Equivalent
Maximum TZS. 2 Billion or USD Equivalent (Where exposure exceed TZS. 2Bn the Bank will decide on merit side)
Currency
TZS or USD (depending on the repayment source).
Loan Tenor
30 to 90 days (Depending on the terms of certificate raised and LPO or Sales Contracts)
Loan Purpose
To finance working capital gap for businesses
Pricing
Pricing Policy for short-term loans will apply (where borrower provides collateral interest rate discount of 1% shall apply)
Repayment
Interest will be serviced monthly, quarterly or in bullet payment depending on borrower business cash flow
Principal amount will be settled upon receipt of payment from employer either monthly, quarterly or in bullet payment depending on payment terms.
Insurance
Key-man insurance naming CRDB as beneficiary must be in place.
- Very good existing and new borrowers with good track records in account conduct and credit History.
- Legally registered in Tanzania with previous successfully executed purchase orders or contracts from reputable Employer
- Acceptable certificates to be discounted are those from reputable organizations that have the habit of settling their obligations within an acceptable timeline.
- Certificates with outstanding payments above 60 days are not eligible for financing.
Overdraft Facilities or Revolving facilities
An overdraft facility shall be granted for working capital purposes only as a revolving line of credit that self-liquidates as the merchandise is sold. For this reason, overdraft facilities is encouraged only for borrowers whose accounts swing, and turnover warrant increased working capital for their business. Overdraft facilities will be granted for a duration not exceeding twelve (12) months.
Parameter
Description
Loan Amount
Maximum TZS 5,000,000,000 for Agri MSMEs and any amount above TZS. 5,000,000,000 for Agri Wholesale
Currency
TZS or USD (depending on the repayment source).
Loan Tenor
12 months
Pricing
16%-18% on TZS and 12% to 13% on USD per annum accrued daily but charged monthly
Repayment
Accrued Interest serviced monthly. Principal should have been paid in fully on expiry date
Insurance
Key-man insurance naming CRDB as the first loss payee needs to be in place (where applicable).
- Owner of any legal business with steady cash flows
- Existed in business operations for a period not less than 12 months
- Licensed by all relevant authorities
- Accounts swing and turnover warrant increased working capital for the business. Good business performance to meet the repayment within specified time.
- Renewal or extension is subject to if there is no ‘ever greening’ or hardcore elements and all interest and charges due have been paid; and the account has swung at least with a minimum of 50% of the approved limit
Temporary Overdraft Facilities (TODs)
Granted to creditworthy customers with good account operation record for very short term period not exceeding three (3) months to meet temporary cash deficit as a result of delay in receipt of payments or withdrawing against uncleared effects. Temporary overdraft facilities shall be fully repaid at expiry date. Unlike overdraft facilities, TOD's may not be renewed or extended unless supported by exceptional circumstances such as a delay in receipt of assured payments that would liquidate the facility
Parameter
Temporary Overdraft
Loan Amount
Depends with business needs but must always be with the single borrowers limit.
Currency
TZS or USD (depending on the repayment source).
Loan Tenor
3 months
Pricing
16%-18% for TZS and 12% to 13% for USD per annum accrued daily but charged monthly
Repayment
Accrued Interest serviced monthly. Principal should have been paid in fully on expiry date
Insurance
Key-man insurance naming CRDB as the first loss payee need to be in place (where applicable).
• Creditworthy customers of any legal business with steady cash flows
Working Capital Short Term loan facilities
These facilities are usually granted for working capital expansion payable in equal installments within 36 months.
Parameter
Term loan
Loan Amount
Maximum TZS 5,000,000,000 for Agri MSMEs and above TZS. 5,000,000,000 for Agri Wholesale/Corporates
Currency
TZS or USD (depending on the repayment source).
Loan Tenor
Maximum 36 months
Pricing
16%-18% for TZS and 12% to 13% for USD per annum charged on reducing balance basis
Repayment
Equal instalment comprising of principal and interest paid either monthly, in two months, quarterly, semi-annually, annually or in lump sum depending on business cash flows.
Insurance
Key-man insurance naming CRDB as the first loss payee needs to be in place (where applicable).
- Owner of any legal business with steady cash flows
- Existed in business operations for a period not less than 12 months
- Licensed by all relevant authorities
- Good business performance to meet the repayment within specified time.
Farming Equipment Financing
This facility is designed for Agribusiness customers in need of farming equipment, where by 75% of the proforma Value of the equipment is financed.
Features
Description
Qualifying loan purposes
Purchase of farming equipment
Tenure of facility
Maximum period of 60 months
Loan Amount
A maximum of TZS 5,000,000,000 for Agri MSMEs and above that for Agri Wholesale/Corporates or US$ Equivalent
Currency
TZS or US$
Equity Contribution
Minimum contribution of 25%
Pricing
16% to 18% (TZS) or 12% to 13% ($) per annum charged on reducing balance.
- Own agribusiness project which is in operations for a period not less than 36 months
- Operate legally and licensed by all respective authorities
- Good business performance to meet the repayment within specified time
- Good track record of banking conduct and financial
- Willing to purchase from bank approved supplier
Truck Loans
This facility is designed for financing purchase of truck specific for transporting services in the agricultural value chain. Offered in partnership with farm equipment and trucks sellers where by borrower is financed 75% of invoice value.
Features
Description
Qualifying loan purposes
Purchase of Truck (for Agri transport services)
Tenure of facility
Maximum of 60 months
Loan Amount
Maximum TZS 5,000,000,000 for Agri MSMEs and above that for Agri Wholesale/Corporates
Equity Contribution
25% Equity Contribution
Pricing
16% to 18% for TZS and 12% to 13% for USD per annum on reducing balance
Collateral requirements
Minimum Requirements
1. Chattel mortgage of the financed truck
- Existed in business operations for a period not less than 36 months.
- Good business performance to meet the repayment within specified time
- Good track record of banking conduct
Plant & Machinery loans
This facility is designed for investors in value addition (agro processors/manufacturers) with more than 12-month experience in the business operations, where the targeted beneficiaries are financed up to 60% of the proforma invoice Value of the designated factory plant and machinery.
Parameter
Description
Qualifying loan purposes
Purchase of factory plant and machinery
Loan Amount
Maximum of TZS. 5 Billion for Agri MSMEs and above that cap for Agri Wholesale/Corporate
Tenure of facility
Minimum period 36 months and maximum period 120 months
Currency
TZS & USD
Equity Contribution
Minimum contribution of 40%
Pricing
16% to 18% for TZS and 12% to 13% for USD per annum charged on reducing balance.
- Customer with ability to make down payment of 40% of invoice value
- Existed in business operation for more than 12 months
- Licensed by all respective authorities
- Good business performance to meet the repayment within specified time
- Good track record of banking conduct and financial performance
Bid Guarantee
These are off balance sheet credit facilities which does not involve cash disbursement. The bank only undertakes full liability to pay the specified amount on the event the customer fails to carry out the terms of the contract.
Features
Description
Qualifying loan purposes
Bid Guarantee
Tenure of facility
Depend on Contract terms and conditions
Exposure Limit per individual
As required by Employer (Maximum TZS 5,000,000,000 for Agri MSMEs and above that limit for Agri Wholesale)
Pricing
1% for TZS and 0.5% for USD per quarter paid up-front
Collateral requirements
No collateral Required
- Creditworthy customer with good track record on both account conduct and credit history
- Is on process to bid for a tender of which one of the requirements is to submit bid guarantee.
Performance Guarantee
These are off balance sheet credit facilities which does not involve cash disbursement. The bank only undertakes full liability to pay the specified amount on the event the customer fails to carry out the terms of the contract.
Features
Traditional Window
Special Window - TANROADS/TARURA
Qualifying loan purposes
Performance Guarantee
Performance Guarantee
Tenure of facility
Depends on Contract terms and conditions
Depends on Contract terms and conditions
Amount
As required by Employer
Up to 25% of Contract value as required by employer
Pricing
1% for TZS and 0.5% for USD per quarter paid up-front
1% for TZS and 0.5% for USD per quarter paid up-front.
Collateral requirements
Minimum Requirements
1. Any acceptable security
Minimum Requirements
1. Deed of Assignments between Contractor, Employer and Bank
2. Cash cover collateral to be built overtime by retaining 10% of any payments/certificate raised under the contract
Additional Requirements
1. Irrevocable letter of undertaking from TANROADS/TARURA to pay all the proceeds of the contract through customer account at our bank.
- Creditworthy customer with good track record on both account conduct and credit history
- Has been awarded a tender of which one of requirements is to submit performance guarantee
- Good track record in executing contract of similar attributes
- Registered with all relevant authorities
Advance Payment Guarantee
These are off balance sheet credit facilities which does not involve cash disbursement. The bank only undertakes full liability to pay the specified amount on the event the customer fails to carry out the terms of the contract.
Features
Description
Qualifying loan purposes
Advance Payment
Tenure of facility
Depend on Contract terms and conditions
Exposure Limit per individual
As required by Employer
Pricing
1% for TZS and 0.5% for USD per quarter paid up-front
Collateral requirements
Any acceptable security
- Creditworthy customer with good track record on both account conduct and credit history
- Has been awarded a tender of which terms of contracts allows application of advance payment.
- Good track record in executing contract of similar attributes
- Registered with all relevant authorities
Retention Payment Guarantee
These are off balance sheet credit facilities which does not involve cash disbursement. The bank only undertakes full liability to pay the specified amount on the event the customer fails to carry out the terms of the contract.
Features
Description
Qualifying loan purposes
Retention Payment Guarantee
Tenure of facility
Depend on Contract terms and conditions
Exposure Limit per individual
As required by Employer
Pricing
1% for TZS and 0.5% for USD per quarter paid up-front
Collateral requirements
Any acceptable security
- Creditworthy customer with good track record on both account conduct and credit history
- Has completed execution of awarded contract of which terms of contracts requires retention of some payment for a period.
- Good track record in executing contract of similar attributes
- Registered with all relevant authorities
Payment Guarantee
This involves bank undertaking to guarantee the seller of goods or services that the buyer (borrower/bank customer) shall affect payment within specified period.
Parameter
Description
Qualifying loan purposes
Payment Guarantee
Tenure of facility
Depend on Contract terms and conditions
Exposure Limit per individual
As required by Employer
Pricing
1% for TZS and 0.5% for USD per quarter paid upfront
Collateral requirements
Any acceptable security
- Creditworthy customer with good track record on both account conduct and credit history
- Good track record in executing contract of similar attributes
- Registered with all relevant authorities
Letters of Credit (LC)
This involves bank undertaking to guarantee the exporter from abroad that the importer (borrower/bank customer) shall affect payment upon delivery of goods which meets agreed terms of trade.
Features
Description
Qualifying loan purposes
Letters of Credit
Tenure of facility
Depend on Contract terms and conditions
Exposure Limit per individual
Maximum TZS 5,000,000,000 for Agri MSMEs and above that cap for Agri Wholesale/Corporate
Pricing
1% for TZS and 0.5% for USD per quarter paid up-front
Collateral requirements
Any acceptable security
- Creditworthy customer with good track record on both account conduct and credit history
- Good track record in executing transactions of similar attributes
- Registered with all relevant authorities
These are products designed for small and mediums enterprises which already exposed to conventional Banking and related services. CRDB has crafted a range of loan products for Agri MSMEs, depending on the customer profile, nature of transactions and business in general.
Transaction based credits are granted for a duration not exceeding twelve (12) months. These facilities are granted to finance a specific order/contracts. Deeds of assignment of proceeds from the order/ contract will be the additional security and orders/contracts to be financed shall be those from reputable institutions/employers with capacity and strong reputation of repaying debts.
Short-term transaction-based loan used to improve customer’s business working capital and cash flow prior to the fulfillment of a purchase order. POF allows a business to borrow funds against a purchase order or sales contract from its local buyer(s) by borrowing against a percentage of the value of the purchase order,
Parameter | Purchase Order Finance (POF) |
Loan Amount | Up to 85% of supplier’s tax invoice value. |
TZS. 10 Million or USD Equivalent | |
TZS. 2 Billion or USD Equivalent (Where exposure exceed TZS. 2Bn the Bank will decide on merit side) | |
Currency | TZS or USD (depending on the repayment source). |
Loan Tenor | 30 to 180 days (Depending on the terms of LPO or Sales Contracts) |
Loan Purpose | To finance the confirmed purchase orders or sales contracts. |
Pricing | Pricing Policy for short-term loans will apply (where borrower provides collateral interest rate discount of 1% shall apply) |
Repayment | Interest will be serviced monthly, quarterly or in bullet payment depending on borrower’s business cash flow |
Principal amount will be settled upon receipt of payment from client/employer/buyer either monthly, quarterly or in bullet payment depending on payment terms. | |
Insurance | Key-man insurance naming CRDB as the first loss payee must be in place. |
- Very good existing and new borrowers with good track records in Account conduct and credit history
- Legally registered in Tanzania with previous successfully executed purchase orders or contracts from reputable Buyer/Client/Employer
- Acceptable LPO/Contracts are those from reputable organizations that have the habit of settling their obligations within acceptable timeline.
- LPO/contracts with payment terms below 180 days
Short-term transaction based loan used to improve Agribusiness customers’ working capital for the aim of bridging the gaps on business cash flow needs. IDF allows agribusiness client to borrow funds against confirmed unpaid invoices raised either after partial or complete implementation of contract that will be paid by employer or Client in the near future and within the prescribed time and terms and conditions between contract employer and Borrower
Parameter | Invoice Discounting |
Loan Amount | Up to 75% of raised Invoice value excluding tax. |
Minimum TZS. 10 Million or USD Equivalent | |
Maximum TZS. 2 Billion or USD Equivalent (Where exposure exceed TZS. 2Bn the Bank will decide on merit side) | |
Currency | TZS or USD (depending on the repayment source). |
Loan Tenor | 30 to 90 days (Depending on the terms of certificate raised and LPO or Sales Contracts) |
Loan Purpose | To finance working capital gap for underlined businesses |
Pricing | Pricing Policy for short-term loans will apply (where borrower provides collateral interest rate discount of 1% shall apply) |
Repayment | Interest will be serviced monthly, quarterly or in bullet payment depending on borrower’s business cash flow |
Principal amount will be settled upon receipt of payment from employer either monthly, quarterly or in bullet payment depending on payment terms. | |
Insurance | Key-man insurance naming CRDB as beneficiary must be in place. |
- Very good existing and new borrowers with good track records in account conduct and credit History.
- Legally registered in Tanzania with previous successfully executed purchase orders or contracts from reputable Employer
- Acceptable invoices to be discounted are those from reputable organizations that have the habit of settling their obligations within acceptable timeline.
- Invoices with outstanding payments above 60 days are not eligible for financing.
Short-term transaction-based loan used to improve working capital for the aim of bridging the gaps on business cash flow needs, especially for contractors. CDF allows Agribusiness customers to borrow funds against unpaid Certificates raised either after partial or complete implementation of contract that will be paid by employer or Client soon and within prescribed time and terms and conditions between contract employer and Borrower
Parameter | Certificate Discounting |
Loan Amount | Up to 75% of raised Certificate/Invoice value excluding tax. |
Minimum TZS. 10 Million or USD Equivalent | |
Maximum TZS. 2 Billion or USD Equivalent (Where exposure exceed TZS. 2Bn the Bank will decide on merit side) | |
Currency | TZS or USD (depending on the repayment source). |
Loan Tenor | 30 to 90 days (Depending on the terms of certificate raised and LPO or Sales Contracts) |
Loan Purpose | To finance working capital gap for businesses |
Pricing | Pricing Policy for short-term loans will apply (where borrower provides collateral interest rate discount of 1% shall apply) |
Repayment | Interest will be serviced monthly, quarterly or in bullet payment depending on borrower business cash flow |
Principal amount will be settled upon receipt of payment from employer either monthly, quarterly or in bullet payment depending on payment terms. | |
Insurance | Key-man insurance naming CRDB as beneficiary must be in place. |
- Very good existing and new borrowers with good track records in account conduct and credit History.
- Legally registered in Tanzania with previous successfully executed purchase orders or contracts from reputable Employer
- Acceptable certificates to be discounted are those from reputable organizations that have the habit of settling their obligations within an acceptable timeline.
- Certificates with outstanding payments above 60 days are not eligible for financing.
An overdraft facility shall be granted for working capital purposes only as a revolving line of credit that self-liquidates as the merchandise is sold. For this reason, overdraft facilities is encouraged only for borrowers whose accounts swing, and turnover warrant increased working capital for their business. Overdraft facilities will be granted for a duration not exceeding twelve (12) months.
Parameter | Description |
Loan Amount | Maximum TZS 5,000,000,000 for Agri MSMEs and any amount above TZS. 5,000,000,000 for Agri Wholesale |
Currency | TZS or USD (depending on the repayment source). |
Loan Tenor | 12 months |
Pricing | 16%-18% on TZS and 12% to 13% on USD per annum accrued daily but charged monthly |
Repayment | Accrued Interest serviced monthly. Principal should have been paid in fully on expiry date |
Insurance | Key-man insurance naming CRDB as the first loss payee needs to be in place (where applicable). |
- Owner of any legal business with steady cash flows
- Existed in business operations for a period not less than 12 months
- Licensed by all relevant authorities
- Accounts swing and turnover warrant increased working capital for the business. Good business performance to meet the repayment within specified time.
- Renewal or extension is subject to if there is no ‘ever greening’ or hardcore elements and all interest and charges due have been paid; and the account has swung at least with a minimum of 50% of the approved limit
Granted to creditworthy customers with good account operation record for very short term period not exceeding three (3) months to meet temporary cash deficit as a result of delay in receipt of payments or withdrawing against uncleared effects. Temporary overdraft facilities shall be fully repaid at expiry date. Unlike overdraft facilities, TOD's may not be renewed or extended unless supported by exceptional circumstances such as a delay in receipt of assured payments that would liquidate the facility
Parameter | Temporary Overdraft |
Loan Amount | Depends with business needs but must always be with the single borrowers limit. |
Currency | TZS or USD (depending on the repayment source). |
Loan Tenor | 3 months |
Pricing | 16%-18% for TZS and 12% to 13% for USD per annum accrued daily but charged monthly |
Repayment | Accrued Interest serviced monthly. Principal should have been paid in fully on expiry date |
Insurance | Key-man insurance naming CRDB as the first loss payee need to be in place (where applicable). |
• Creditworthy customers of any legal business with steady cash flows
These facilities are usually granted for working capital expansion payable in equal installments within 36 months.
Parameter | Term loan |
Loan Amount | Maximum TZS 5,000,000,000 for Agri MSMEs and above TZS. 5,000,000,000 for Agri Wholesale/Corporates |
Currency | TZS or USD (depending on the repayment source). |
Loan Tenor | Maximum 36 months |
Pricing | 16%-18% for TZS and 12% to 13% for USD per annum charged on reducing balance basis |
Repayment | Equal instalment comprising of principal and interest paid either monthly, in two months, quarterly, semi-annually, annually or in lump sum depending on business cash flows. |
Insurance | Key-man insurance naming CRDB as the first loss payee needs to be in place (where applicable). |
- Owner of any legal business with steady cash flows
- Existed in business operations for a period not less than 12 months
- Licensed by all relevant authorities
- Good business performance to meet the repayment within specified time.
This facility is designed for Agribusiness customers in need of farming equipment, where by 75% of the proforma Value of the equipment is financed.
Features | Description |
Qualifying loan purposes | Purchase of farming equipment |
Tenure of facility | Maximum period of 60 months |
Loan Amount | A maximum of TZS 5,000,000,000 for Agri MSMEs and above that for Agri Wholesale/Corporates or US$ Equivalent |
Currency | TZS or US$ |
Equity Contribution | Minimum contribution of 25% |
Pricing | 16% to 18% (TZS) or 12% to 13% ($) per annum charged on reducing balance. |
- Own agribusiness project which is in operations for a period not less than 36 months
- Operate legally and licensed by all respective authorities
- Good business performance to meet the repayment within specified time
- Good track record of banking conduct and financial
- Willing to purchase from bank approved supplier
This facility is designed for financing purchase of truck specific for transporting services in the agricultural value chain. Offered in partnership with farm equipment and trucks sellers where by borrower is financed 75% of invoice value.
Features | Description |
Qualifying loan purposes | Purchase of Truck (for Agri transport services) |
Tenure of facility | Maximum of 60 months |
Loan Amount | Maximum TZS 5,000,000,000 for Agri MSMEs and above that for Agri Wholesale/Corporates |
Equity Contribution | 25% Equity Contribution |
Pricing | 16% to 18% for TZS and 12% to 13% for USD per annum on reducing balance |
Collateral requirements | Minimum Requirements 1. Chattel mortgage of the financed truck |
- Existed in business operations for a period not less than 36 months.
- Good business performance to meet the repayment within specified time
- Good track record of banking conduct
This facility is designed for investors in value addition (agro processors/manufacturers) with more than 12-month experience in the business operations, where the targeted beneficiaries are financed up to 60% of the proforma invoice Value of the designated factory plant and machinery.
Parameter | Description |
Qualifying loan purposes | Purchase of factory plant and machinery |
Loan Amount | Maximum of TZS. 5 Billion for Agri MSMEs and above that cap for Agri Wholesale/Corporate |
Tenure of facility | Minimum period 36 months and maximum period 120 months |
Currency | TZS & USD |
Equity Contribution | Minimum contribution of 40% |
Pricing | 16% to 18% for TZS and 12% to 13% for USD per annum charged on reducing balance. |
- Customer with ability to make down payment of 40% of invoice value
- Existed in business operation for more than 12 months
- Licensed by all respective authorities
- Good business performance to meet the repayment within specified time
- Good track record of banking conduct and financial performance
These are off balance sheet credit facilities which does not involve cash disbursement. The bank only undertakes full liability to pay the specified amount on the event the customer fails to carry out the terms of the contract.
Features | Description |
Qualifying loan purposes | Bid Guarantee |
Tenure of facility | Depend on Contract terms and conditions |
Exposure Limit per individual | As required by Employer (Maximum TZS 5,000,000,000 for Agri MSMEs and above that limit for Agri Wholesale) |
Pricing | 1% for TZS and 0.5% for USD per quarter paid up-front |
Collateral requirements | No collateral Required |
- Creditworthy customer with good track record on both account conduct and credit history
- Is on process to bid for a tender of which one of the requirements is to submit bid guarantee.
These are off balance sheet credit facilities which does not involve cash disbursement. The bank only undertakes full liability to pay the specified amount on the event the customer fails to carry out the terms of the contract.
Features | Traditional Window | Special Window - TANROADS/TARURA |
Qualifying loan purposes | Performance Guarantee | Performance Guarantee |
Tenure of facility | Depends on Contract terms and conditions | Depends on Contract terms and conditions |
Amount | As required by Employer | Up to 25% of Contract value as required by employer |
Pricing | 1% for TZS and 0.5% for USD per quarter paid up-front | 1% for TZS and 0.5% for USD per quarter paid up-front. |
Collateral requirements | Minimum Requirements 1. Any acceptable security | Minimum Requirements 1. Deed of Assignments between Contractor, Employer and Bank 2. Cash cover collateral to be built overtime by retaining 10% of any payments/certificate raised under the contract Additional Requirements 1. Irrevocable letter of undertaking from TANROADS/TARURA to pay all the proceeds of the contract through customer account at our bank. |
- Creditworthy customer with good track record on both account conduct and credit history
- Has been awarded a tender of which one of requirements is to submit performance guarantee
- Good track record in executing contract of similar attributes
- Registered with all relevant authorities
These are off balance sheet credit facilities which does not involve cash disbursement. The bank only undertakes full liability to pay the specified amount on the event the customer fails to carry out the terms of the contract.
Features | Description |
Qualifying loan purposes | Advance Payment |
Tenure of facility | Depend on Contract terms and conditions |
Exposure Limit per individual | As required by Employer |
Pricing | 1% for TZS and 0.5% for USD per quarter paid up-front |
Collateral requirements | Any acceptable security |
- Creditworthy customer with good track record on both account conduct and credit history
- Has been awarded a tender of which terms of contracts allows application of advance payment.
- Good track record in executing contract of similar attributes
- Registered with all relevant authorities
These are off balance sheet credit facilities which does not involve cash disbursement. The bank only undertakes full liability to pay the specified amount on the event the customer fails to carry out the terms of the contract.
Features | Description |
Qualifying loan purposes | Retention Payment Guarantee |
Tenure of facility | Depend on Contract terms and conditions |
Exposure Limit per individual | As required by Employer |
Pricing | 1% for TZS and 0.5% for USD per quarter paid up-front |
Collateral requirements | Any acceptable security |
- Creditworthy customer with good track record on both account conduct and credit history
- Has completed execution of awarded contract of which terms of contracts requires retention of some payment for a period.
- Good track record in executing contract of similar attributes
- Registered with all relevant authorities
This involves bank undertaking to guarantee the seller of goods or services that the buyer (borrower/bank customer) shall affect payment within specified period.
Parameter | Description |
Qualifying loan purposes | Payment Guarantee |
Tenure of facility | Depend on Contract terms and conditions |
Exposure Limit per individual | As required by Employer |
Pricing | 1% for TZS and 0.5% for USD per quarter paid upfront |
Collateral requirements | Any acceptable security |
- Creditworthy customer with good track record on both account conduct and credit history
- Good track record in executing contract of similar attributes
- Registered with all relevant authorities
This involves bank undertaking to guarantee the exporter from abroad that the importer (borrower/bank customer) shall affect payment upon delivery of goods which meets agreed terms of trade.
Features | Description |
Qualifying loan purposes | Letters of Credit |
Tenure of facility | Depend on Contract terms and conditions |
Exposure Limit per individual | Maximum TZS 5,000,000,000 for Agri MSMEs and above that cap for Agri Wholesale/Corporate |
Pricing | 1% for TZS and 0.5% for USD per quarter paid up-front |
Collateral requirements | Any acceptable security |
- Creditworthy customer with good track record on both account conduct and credit history
- Good track record in executing transactions of similar attributes
- Registered with all relevant authorities