SME Group Lending

Solidarity group lending is the process of advancing loans to micro and small business sector which its security is based on group guarantee with attachment of assets repayable on monthly basis and compulsory savings.
Solidarity Group Loans are for micro and small entrepreneurs whose income depends on their own businesses or economic activities, who may lack formal financial statements and other accounting and operational records, and who may lack physical securities.

Loan Amount
From: TZS 5,000,001/- TO TZS 10,000,000/
Member Fee
Turn-around Time
Seven (7) Working Days
Interest Rate
28% Flat per year
Repayment Model
Repayment Period
Up to 24 Months
Life Insurance
Commitment Fee
Cash Cover
Member's Guarantees, Borrowers Weekly Savings, Movable household's properties, e.g. Radio, TV, Bed sheets, Sewing machine, Bicycle, or stocks of goods and Immovable properties or Sales agreements
  • Age:    18 - 65 years
  • Owner of individual business.
  • At least 3 months experience in existing business.
  • At least 3 months in existing business location.
  • To save a minimum of TZS. 20,000/= per month, which shall form part of the Loan Installment due
  • To be in possession of savings
  • The business to be financed must have a regular cash flow
  • Acceptable collateral to the bank or guarantee from any two guarantors from the group backed up with movable/immovable properties.
  • To open an account with the bank. The account should have successfully operated for at least three months with DCB.
  • Maximum age limit for borrower’s (Customers) shall  be 65 years
  • ID/ Passport- Originals to be viewed and copies attached.
  • Two passport size photograph

The security for the loan will take the form of:-
i) Borrowers monthly savings
ii) Members Guarantees
iii) Apart from the group guarantee the customer should submit Immovable property/landed property or chattels,   Households and stock of goods to be pledged to strengthen security position

The loan are to be used for productive purposes They may be applied for
  • The purchase of raw materials
  • The purchase of stock
  • The purchase of fixed assets for the business such as machinery or furniture etc.
  • The expansion of the business

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