Top Tanzanian banks : Interest rate for the loan Comparison .

The Tanzanian economy with a population of over 54 Million ( Projection nbs.gov.tz) ranks 82nd in the world with a GDP PPP of 63.504 billion and GDP PPP per capita of 1,505 vs 48,147 (United States) according to the IMF in 2011. The national currency is the Tanzanian shilling (TZS). In Tanzania agreed upfront fixed term interest products are called fixed deposits. According to CIA.gov its inflation was estimated at 11.1% in 2011 and 7.2% in 2010.
Tanzania has many banks which you can secure loan from first you have to know and compare these banks interest which you should payback to the bank when you being given the loan.

The following are the list of Commercial banks in Tanzania

1 AccessBank Tanzania Ltd
      Access Bank has established the following accounts for you
 

• Rahisi Account
• Saving Account
• Mikakati Account
• Elimu Account
• Current Account
• Term Deposit
• AccessBank ATM Card
• Money Transfer
• KIKUNDI Account

2 Advans Bank
     Know more about Advans Bank

3 Akiba Commercial Bank
   Types of loan you can secure at Akiba Commercial Bank
    Biashara-loans ,solidarity-loans/ Mikopo ya vikundi ,home-improvement-loans,
    Corporate-loans, salaried-loans
     Visit the Bank website

4 Azania Bank.

5 ABC Holdings Limited
6 Bank M Tanzania Limited
7 Bank of Africa Tanzania Ltd
8 Barclays
9 Citi Bank
10 CRDB Bank Plc
11 Commercial Bank of Africa
12 Diamond Trust Bank (DTB)
13 Ecobank
14 Exim Bank
15 International Commercial Bank
16 Kenya Commercial Bank
17 Peoples Bank of Zanzibar
18 Stanbic Bank
19 Guardian Bank Limited
20 Standard Chartered Bank
21 United Bank for Africa
22 International Commercial Bank (T) Ltd
23 Mkombozi Commercial Bank Plc

A mortgage is the key to your dream home

Traditionally, Tanzanians have had to save their own money for years in order to build or buy their dream home. However, nowadays, more and more banks have started offering mortgages and it is slowly becoming a popular way for some Tanzanians to finance their homes.

What exactly is a mortgage?

A mortgage is a legal agreement whereby a bank lends you money to be paid back with interest within a specific period of time, in exchange for taking the title of your property until the debt has been repaid.

While still relatively new, according to Tanzania Invest, the mortgage market in Tanzania has made some progress and experienced an overall 13% increase in 2016. However, the mortgage market still only contributes to less than 1% of the GDP. This is not because people in Tanzania don’t need home loans, but that they are unaware of their options and so do not utilise the services available to them.

Luckily, we’ve got a list of 8 banks in Tanzania that offer mortgage loans.

1. Equity Bank:

Equity bank commands about 24 percent of the mortgage market share in Tanzania. This Kenyan bank’s success stems from having already effectively developed its mortgage services in the Kenyan market.

• Equity offers loans of up to 80% of the value of the property
• The debt needs to be paid within 10 years.
• The interest rate for a loan to build or buy a home is just below 15%
• The interest rate to buy a plot of land is 16%

2. Stanbic Bank

Stanbic Bank holds 14% of the mortgage market share, making it the second most popular mortgage loan provider in Tanzania. Like Equity Bank, Stanbic offers home loans of up to 80% of the value of the property. However, you get more time to pay the debt back as the repayment period is 15 years.

3. Azania Bank 

Azania Bank has about 11% of the mortgage market share in Tanzania. To get a home loan with them, they require:

• An Azania bank account with a balance of 20% of the loan amount
• The interest rate is 19% per year, however, the rate reduces as years go by.
• The total amount of repayment period is 15 years.

4. CRDB 

CRDB, the biggest bank in Tanzania, offers a unique mortgage service called ‘Jijenge’, whereby you can get a loan to pay for construction materials to build a home. With the Jijenge program you get:

• A loan of up to 90% of the building material costs
• An interest rate of 18% (though may increase depending on account)
• A 25 year period to repay the loan

5. National Microfinance Bank (NMB)

NMB Bank, the second biggest bank in Tanzania, provides loans of up to 80% of the value of the house you want to buy. It also offers a relatively flexible repayment plan, as long as the debt has been cleared by 15 years from when you got the loan.

6. National Bank of Commerce (NBC)

NBC offers mortgages for a number of circumstances, including:

• Buying an already completed home (NBC covers up to 80% of the cost of the home)
• Building a home (NBC covers up to 80% of the building material)
• Renovating a home or finishing an already started home (the home should be at least 50% complete)
• Re-mortgaging: Moving your loan from another bank to NBC

7. Kenya Commercial Bank (KCB)

KCB offers it’s customers a loan of up to 80% of the total cost of an already completed home. In order to qualify for the loan you must provide:

• A bank statement from the last 6-months
• Sales agreement
• A recent salary slip if you are employed
• Property valuation report approved by KCB

8. Diamond Trust Bank (DTB)

DTB entered the mortgage market in 2016, and quickly became a go-to bank for home loans. Their loans vary from 80% and below, and interest rates also depend on individual cases.

Start living your best life today

As mentioned before, the Tanzanian mortgage market is relatively new, and as a result, it definitely has it’s shortcomings like high-interest rates and long application processes. However, it will only get better as more and more people start to think of mortgages when they are considering ways to finance their homes.

Think about it, if you are a young professional and want a dream home for you and your family; why not take out a loan now and get your dream house while you are still young, rather than wait until you are older? Simply put, mortgages help us start living our best lives today, so if you are ready for your dream home don’t let money hold you back.

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About the Author

Mussa Msemakweli is a technology entrepreneur, Book writer and digital marketing expert. He is currently C E O at the Africa shared . His work has been featured in a number of publications, including the Maisha halisi Magazine and on Culture trip. If you have a good time follow me on facebook and instagram or leave a comment, Thanks.
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Mussa Msemakweli