Dar es Salaam. Small and Medium Enterprises (SMEs) can now borrow without collateral after the National Bank of Commerce (NBC) introduced unsecured loans as part of its strategy to support the country’s industrialization agenda.
The loans, which are issued basing on creditworthiness of a borrower, will cover distributors and suppliers of large companies, NBC director of business banking Elvis Ndunguru said yesterday at the ongoing Dar es Salaam International Trade Fair.
“NBC has taken this initiative to support SMEs so they would grow as the bank’s priority is to support the government’s industrialization agenda,” he said.
Various research reports show that SMEs occupy about 95 percent of all businesses in the country and is one of the fast-growing sectors of the economy, contributing about 35 percent of the GDP.
“Therefore, the bank sees a need to grow with the sector where we conduct regular market research in order to come up with appropriate financial solutions that respond to our customers needs as our strategy of supporting their journey to growth,” Mr Ndunguru said.
He said the bank trained entrepreneurs and offered over Sh80 billion-worth of loans to over 3,000 SMES in Tanzania during the past one year alone, saying more credit facilities are in place for those who are eligible.
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