Group Loan Scheme

This is an employer guaranteed or supported loan scheme tailored to meet personal incidental expenses for full time employees of reputable companies who the bank has dealings with. The scheme is administered after a written undertaking by the company otherwise known as the employer, that guarantees either a monthly upfront or direct payroll deduction by the employer for the monthly loan repayment amount or channel the employee's full salary to the bank until the loan is fully repaid.

 

Qualifying Criteria

  • Scheme must be negotiated and terms and conditions signed for by the employer on behalf of all its employees.
  • Must be employed by a reputable employer that demonstrates a strong financial background.
  • Applicant must be permanently employed by the employer who BancABC have a signed group scheme agreement.
  • The applicant must have completed his/her probabtionary period
  • Employee must be older than 18yrs of age.
  • Monthly income/salary must show employee's capacity to pay back without strain
  • All loan applications must be endorsed by the employer before being submitted to the bank, as evidence of employer guarantee

Qualifying Conditions

  • Minimum qualifying net salary of only TZS200,000 per month
  • Minimum loan amount of TZS1m and Maximum loan amount of TZS40m
  • Repayment period ranging from a minimum of 6 months to a maximum 36 months
  • Monthly loan repayment amount should not exceed 30% of net salary after deduction of living expenses and other loans so as to prevent borrower from over committing themselves.
  • Interest rate is negotiated with the employer and is subject to change in line with market condition
  • All loans shall have a credit life insurance cover currently at a rate of 0.35% of loan amount per year.
 
 
  • Lower interest rate as a result of the group discount
  • Enhanced purchasing power
  • Easily resolving unforeseen financial demands
  • Enhanced liquidity position
  • Affordable and well planned monthly installments giving you flexibility of managing your cash flow throughout the month
  • Reduced chances of payment default through upfront payroll deduction.
  • Improves employee productivity through financial peace of mind
  • Strengthens employer/employee relationship
  • Employer loan administration burden now relinquished to the bank thereby letting the employer focus on their core business.
  • Saves company cash outlay on company administered staff loans.

Hereunder is the repayment schedule for illustration purpose based on a rate of 19%pa over 36 months

 Group Scheme Loan Repayment Schedules
    Interest Rate 19%
  Number of months over which loan is repaid
Years 1 2 3
Months 12 24 36
Loan amount Monthly Repayment Amount
1,000,000 TZS 92,156.58 TZS 50,408.62 TZS 36,656.02
2,500,000 TZS 230,391.45 TZS 126,021.54 TZS 91,640.05
5,000,000 TZS 460,782.89 TZS 252,043.09 TZS 183,280.10
7,500,000 TZS 691,174.34 TZS 378,064.63 TZS 274,920.15
10,000,000 TZS 921,565.78 TZS 504,086.17 TZS 366,560.20
12,500,000 TZS 1,151,957.23 TZS 630,107.72 TZS 458,200.25
15,000,000 TZS 1,382,348.67 TZS 756,129.26 TZS 549,840.30
20,000,000 TZS 1,843,131.56 TZS 1,008,172.34 TZS 733,120.40
25,000,000 TZS 2,303,914.46 TZS 1,260,215.43 TZS 916,400.50
30,000,000 TZS 2,764,697.35 TZS 1,512,258.52 TZS 1,099,680.60
35,000,000 TZS 3,225,480.24 TZS 1,764,301.60 TZS 1,282,960.70
40,000,000 TZS 3,686,263.13 TZS 2,016,344.69 TZS 1,466,240.80

For any legal & morally right cause of customer choice such as

  • Home Improvement
  • Unplanned expenses incidentals such as medical bills, motor vehicle repairs etc
  • School fees
  • Purchase of  assets such as furniture etc

Exclusions

  • Any illegal activities such as gambling, purchase of   ammunition, illicit drugs terrorism etc
  • Bad debt bail out
 

To Apply for Group Loan Scheme

Simply bring the following to any of our branches:

  • Must be permanently employed by a company which has entered into the Group Loan Scheme with BancABC
  • Must have a transactional account with the bank.
  • Proof of income i.e., 3 months latest salary pay slips
  • Positive Identification ,i.e., Employer ID, Valid passport, Voters ID
  • Proof of residence, i.e., Utility bills, lease agreement, letter from local executive ward
  • Letter of undertaking or loan support from the employer
 

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