As of April 1, BancABC has announced a reduction in lending rates to boost borrowing on one hand and ease debt payment on the other.
The move makes BancABC one of the very first banks to comply with the Bank of Tanzania (BoT) directive to address Non Performing Loans (NPLs) and increase lending.
In its announcement, BancABC said the rate reduction is across board touching most all borrowing aspects and covers both existing and new customers alike.
“We will be reducing lending rates for term loans, over draft and mortgages…for all customers of with good standing,” the bank’s Managing Director Dana Botha said.
The move comes barely a month after the Bank of Tanzania (BoT) directed all banks in Tanzania to strategize on addressing Non Performing Loans (NPLs) but at the same time to increase lending.
“The bank’s decision is purposely made in line with the Central Bank’s monetary policy…last year, most banks faced extreme liquidity challenges which ultimately affected their lending capabilities,” Mr. Botha detailed.
The lending rate reduction will see the bank’s customers enjoy new or renewed loans at much more affordable repayment rates.
Serving well over 60,000 retail customers with a wide range of products especially affordable mortgage rates, there has not been a better time to be a BancABC client or to open an account with them.
“We believe more customers will be knocking at our doors and we welcome them, there has not been a better time to join us to enjoy fast, low rate loans and affordable repayment plans,” the Managing Director said.
Seconding the bank’s Managing Director BancABC’s Head of Retail and Commercial Banking, Joyce Malai said the lower lending rates offer clients even more affordable and tailored products.
“The new move gives allows us to cross sell and tailor even more products that meet each of our client’s needs…we have placed more emphasis on affordable mortgage rates to meet the growing middle class needs,” she detailed.
Stimulating The Economy
The government through BoT has taken concrete measures to curb the proliferation of Non Performing Loans (NPLs) but at the same time to ensure that lending is eased to stimulate the economy.
The BoT is now advocating reduction of lending rates by Commercial Banks and itself has lowered its own lending rates for them.
It is also urging commercial banks to ease their regulatory requirements including Statutory Minimum Reverse, Discount rates and Treasury Bills.
“This has enabled lending to be more affordable for Individuals, SME’s and Corporate as well, consequently it has enhanced their businesses and is stimulating the economy and we are glad to be amongst the first banks to announce this move,” the Managing Director summed up.
Rather than their traditional investment in Treasury and government bonds these BoT measure encourage banks to lend and that way, stimulate business growth and as more people and businesses borrow, they improves their quality of life and grow their businesses.