Ecobank Tanzania has introduced a 12% interest rate loan specifically for civil servants, enabling them to access affordable credit. According to Dr. Charles Asiedu, Managing Director of Ecobank Tanzania, civil servants can borrow up to 125 million TZS with a repayment period of seven years.
“Now is the time for us to extend our services to public servants to enable them to maximize their income capacity,” Dr. Asiedu stated. Unlike traditional loans, civil servants are not required to present assets as security. Instead, their employment status within government institutions is sufficient, and loans are processed within 24 hours once all requirements are met.
Ruth Mwaiselage, Head of Consumer Banking at Ecobank Tanzania, emphasized additional benefits of the loan. “Apart from the affordable interest, the borrower’s account will not have monthly charges, and the loans offered include life insurance,” she said. This insurance protects borrowers against challenges such as death, permanent disability, and job dismissal.
For customers with existing loans from other financial institutions, Ecobank offers to buy out these loans, allowing customers to restructure and potentially increase the loan amount to achieve their life goals.
Ecobank Tanzania has shown significant improvement in its financial health. In 2020, the bank had a non-performing loans (NPLs) ratio of 38% and registered a loss of 11 billion TZS. However, by the following year, the NPLs ratio had dropped to 7.7%, primarily due to write-offs. The positive trend continued with the NPLs ratio falling to 5.0% in 2022 and further to 2.7% last year, reflecting the bank’s robust growth.
A subsidiary of the Ecobank Group, Ecobank Tanzania operates five branches across Dar es Salaam, Arusha, and Mwanza, along with seven ATMs and over 700 agents nationwide.