Tanzania’s Central Bank (BoT) has warned all unlicensed financial institutions, companies and individuals who are conducting lending businesses saying strictly measures will be taken to those violating laws, regulations and guidelines
A statement issued by the lender of last resort added that apart from 20m/- fine, those who go contrary to the laws will serve a two-year jail term.
BOT, according to the statement, has learned that there are institutions, companies and individuals who are violating the financial regulations.
Equally, BOT reminded all licensed small financial service providers to adhere to the laws, regulations and guidelines granting borrowers with contracts, clearly indicating loan interest rates in accordance to the loan policy as well as ensuring that interests are calculated on month basis and not otherwise.
However, the Bank of Tanzania urged citizens to avoid borrowing or doing business with unlicensed financial institutions, companies or individuals.
