Microfinance firm launches loan buyback scheme to help borrowers

04Sep 2020
By Guardian Reporter
The Guardian
Microfinance firm launches loan buyback scheme to help borrowers

​​​​​​​THE Faidika Microfinance Tanzania has launched a new financial scheme that will help loan borrowers from other banks and financial institutions in return for low interest rates.

The firm’s Chief Executive Officer, Baraka Munisi said all government employees with loans from other banks and financial institutions are qualified to access the newly established scheme with a very low interest rate and longer repayment tenure.

Munisi clarified on the new scheme and said, “Under this scheme, Faidika is intending to help borrowers to access much cheaper loans with longer repayment tenure whereby Faidika will buyback/takeover their expensive loans from other financial institutions and provide them with additional loans”

"We have decided to give Tanzanians this opportunity which to a large extent is to relieve them with huge interest rates charged by other financial institutions in the country,” Munisi added.

“We have decided to offer an opportunity of acquiring a loan at affordable rate to every civil servant who is being charged high rate. Faidika is one of the microfinance which offers low interest rates with longer repayment period in the country as compared to others lenders.”

Munisi explained the loan acquisition exercise will be done quickly without delay. Faidika Microfinance issues loan from 200, 000/- to 70m/- and with repayment period from six (6) months to 84 months.

Detailing on the criteria needed, Munisi explained that the process will be quick to a loan borrower who has to submit updated documents to Faidika Microfinance such as the certified settlement balance statement from respective bank or financial institution from where the loan was earlier acquired.

This must be submitted alongside one of the following, worker’s identity card accompanied by either passport or voter's ID or driver's license as well as one passport photograph.

According to Munisi, a new loan borrower is also required to have one salary slip for the previous month's salary and two months bank’s financial statements.

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