Credit facilities offered to groups that are engaged in various economic activities Group Loans are intended to provide these micro entrepreneurs with an opportunity for improving their standard of living.
The loans are to be used for productive purposes including;
· The purchase of raw materials
· The purchase of stock
· The purchase of fixed assets for the business: machinery, furniture etc.
· The expansion of the business: renovation
· It must be a group with economic goals
· From a group of five (5) to ten (10) people
· Group members must have thriving businesses
· There are no fees or charges for applying for a loan Type and Size of Loan
· Loans are given to individuals in a group
· The loan amount for an individual client in the group is from shs 100,000 to shs 5,000,000
· Recovery time is between four (4) months to 12 months depending on the agreement of the group members. Required warranty
· No property guarantee required, it is a guarantee of the group members themselves.
Individual eligibility criteria
Eligible are applicants have to meet all of the following requirements:
· Owner of individual business
· At least 3 months experience in existing business
· Business and home within TCBs area of operation and in the right zone.
· Over 18 years old
· At least 3 months in existing business location
· In control of and committed to business
· Willing to indicate persons who will take care of payments in case of problems.
The following individuals are not eligible:
· That has another loan outstanding with TCB.
· That has had significant repayment problems in the past 3 years.
· That has had a previous application rejected in the past 3 years
Group eligibility criteria
Applicants must belong to a Group whose members:
· Know each other very well
· Trust each other very well
· Joined the Group voluntarily
· Are not close relatives to each other
· Are of similar economic level.
· Have businesses near to each other
· Are ready to meet weekly without fail and on time
· Are prepared to save weekly
· Are willing to select Group leaders
· Are able to guarantee each other
· Are willing to help each other
· Have participated in initial training and all Group meetings
Head Office 10th LAPF Towers, Bagamoyo Road, Opp Makumbusho Village, Kijitonyama, P.O BOX 9300, Dar es salaam