NBC Managing Director Theobald Sabi said in a statement yesterday that this initiative takes up government efforts to enable public sector employees to improve their economic situation.
This assessment was given in the wake of a declaration by President Samia Suluhu Hassan of onepercent decrease of the pay as you earn (PAYE) tax rate from individual wages and salaries.
Addressing a huge for the Workers Day national event at the CCM Kirumba Stadium in Mwanza, the president said the PAYE rate is set to decline to eight percent from nine percent at present.
Sabi said that more than 250,000 civil servants have managed to secure loans from the bank for their personal development needs, borrowing at under 18 percent interest rates, making the loans friendly to repayment from wages.
Loan processes for obtaining loans are simple, thus enabling many people to qualify for the loans, he stated, citing more than 30 years of NBC experience in that regard. “We are proud that our services have impressed many workers in the country and that is why they opt to take loans in our bank,” he observed.
Maria Salum, a teacher at Igoma primary school in Mwanza is among beneficiaries of this initiative. She said she has been using the loans to set up small domestic income generating activities.
Through the loans, she has brought up a chicken farm and is now selling chicken and eggs, she added.