Dar es Salaam - The CRDB Bank Plc is significantly cutting its lending rates to farmers and salaried workers as it seeks to play an increasingly important role in Tanzania’s economic development endeavours.
The bank will now be charging only nine percent (instead of the usual 20 percent) on agricultural loans in a move that promises farmers of an affordable financing option to tweak their operations.
The move comes within months after President Samia Suluhu Hassan’s administration – through the Bank of Tanzania (BoT) - announced several measures that it would undertake in a deliberate effort to create conditions for reducing interest rates on loans and promoting credit intermediation.
Also yesterday, CRDB Bank Plc also slashed lending rates on personal loans for salaried workers to 13 percent from the usual 16 percent.
“We sat down with the BoT late last year and embarked on the implementation of a review of our lending rates and I am happy that we have come up with a solution,” CRDB Bank Plc managing director Abdulmajid Nsekela, said in Dar es Salaam yesterday.
The new nine percent lending interest rate on agriculture will stimulate production for the sector that accounts for 26 percent of Tanzania’s gross domestic product (GDP) and which employs 75 percent of the country’s working-age population.
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