Banks That Offer Student Loans In Tanzania And How To Get It
A lot of students are really wondering where the can get money to go back to school due to how things are in the country today. Numerous questions are running through their minds and it seems the can’t find a lasting solution to it. Well, in every situation there is always a way out. So, in this article, you will be given detailed information on how to get student loans in Tanzania.
What Is A Student Loan?
A student loan is designed to help students pay for education and its associated fees. This loan differs from other kinds of loans in the sense that the interest rate is relatively lower, and the repayment schedule is much more flexible.
Banks That Offer Student Loans In Tanzania
1. FINCA
FINCA is one of few banks in Tanzania that offer loans to students. Features of the loan include:
Education Loan
SHAPING OUR NATION’S FUTURE TOGETHER
The Education Loan is a credit facility that finances the education industry; the loan can either be for financing an education institution or for paying student fees.
Why Should You Apply For This Loan?
- Increase investment in your education institution for purchasing assets, renovations or construction of premises
- For payments of fees for children or relatives
- Flexible collateral.
2. Shule Loan
This is an individual loan for an entrepreneur who owns an educational institution, for instance a school, college, or vocational training institute. The purpose of the loan is to invest in that institution by either purchasing equipment, renovating of premises, or making any other capital injection that may be required at the time.
Feature And Benefits
Get from TZS 500,000 up to TZS 10,000,000 in 5 days!
- The freedom is yours! This loan offers a flexible loan term from 3 to 36 months
- Flexible collateral
- Free insurance, cover the business on unforeseen events and free life insurance for the client, spouse and 4 children under the age of 18
- Monthly loan instalments
- 3 months grace periods, if justified by loan purpose and investment plan
Eligibility Criteria for Shule Loan
- Applicant must be the owner of the education institution
- Institution must be in private ownership
- Owner must be a Tanzanian resident and at least 18 years old with a valid ID card
- Education institute must be registered and it must have been operating for at least 12 months
- Education institution and residence of owner must be within FINCA Microfinance Bank operating area.
3. Ada Loan
This is an individual loan for entrepreneurs with the purpose of paying school fees for their children or relatives. In this case, FINCA Microfinance Bank pays the fees directly to the education institution where the children or relatives of the entrepreneur study.
Feature And Benefits
Get from TZS 500,000 up to TZS 10,000,000 in 5 days!
- Flexible loan term from 3 to 12 months
- Flexible collateral
- Free insurance, cover the business on unforeseen events and free life insurance for the client, spouse and 4 children under the age of 18
- Monthly loan instalments
- Does not restrict you to take another loans i.e. Business Loan etc
Eligibility Criteria for Ada Loan
- Applicant must be a Tanzanian citizen and should have a business
- Applicant must be at least 18 years old and have a valid ID card
- Business must be registered, have a TIN, and must have been operating for at least 6 months
- Businesses must be located within the FINCA Microfinance Bank operation area.
4. BANK OF AFRICA TANZANIA
Bank of Africa Tanzania offers school fees loans to parents who operate accounts in the bank. The loan is dubbed Back to School Loan and has the following features
This is a short term facility that offers financing of school fees for children whose parents operate bank accounts at BANK OF AFRICA – TANZANIA.
Features
- Minimum loan amount -TZS 1 million or USD equivalent
- Maximum loan amount -TZS 10 million or USD equivalent
- Maximum repayment period- 10 months
Terms and Conditions
Total loan repayment should not exceed1/3 of their net salary. The interest rate is on reducing balance basis. The bank can revise the interest rates depending on the market condition without prior notice to the customers.
Open a bank account at BANK OF AFRICA – TANZANIA employer’s undertaking to channel salary through employee bank account at BANK OF AFRICA – TANZANIA.
Benefits
- Fastest and most easily available of all retail loan products
- Lower required borrowing amounts.
- Available of a range of products that offer financing for personal needs.
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