Azania launches 1pc interest women’s loan

Women in the country can now access loans at a one per cent interest rate on monthly basis to be offered through a special bank account launched by Azania Bank in Dar es Salam over the weekend.

Azania Bank Managing Director, Ms Esther Mang’enya said the launch of the special account dubbed ‘Mwanamke-Hodari’ is continuation of the bank’s initiatives aimed at boosting women’s businesses and support President Samia Suluhu Hassan to empower women economically.

“The new bank account is targeting women who face challenges, particularly the difficulties in accessing loans due to conditions that are not in their favour,” she said at the launching event in Dar es Salaam.

The account, which can be opened free of charge will increase capital flows to women and thus empower women economically while contributing to the country’s economic growth.

She said there is no need for a minimum balance for the operation of the account and the holder can make unlimited withdrawals free of charge.

Through the ‘Mwanamke Hodari account’, the borrower will access loans at affordable conditions including one per interest rate.

“In case the borrower dies or acquires illness to the extent of failing to service the loan, then insurance will take care of the situation,” she said.

Ms Mang’enya added that in this initiative a borrower stands a chance to borrow up to four times of her deposited money.

Furthermore, the Azania Bank MD said that the borrower will need to have collateral worth 25 per cent of the loans as opposed to the 100 per cent required in other lending institutions.

On her part, the Minister for Development, Children, Gender, Women and Special Groups, Dr Dorothy Gwajima hailed Azania Bank management for coming up with the bank product targeting women empowerment.

Dr Gwajima urged women to take advantage of the new initiative brought forth by Azania including saving and accessing loans at affordable conditions.

“It is high time women cultivated the culture of saving as well as grab the opportunity for prosperity of their businesses,” she said.