CRDB Bank has come up with special loans in digital form for petty traders ‘Machingas’ thanks to government initiative to formalize the sector after issuing identity cards.
CRDB Managing Director, Abdulmajid Nsekela said during a seminar in Morogoro over the weekend that the loans were aimed at building petty traders financial capacity and digitalisation will speed up the process.
“The loans will be issued through SimAccount which eases the process since borrowers will receive their loans through their mobile phone without visiting a bank branch,” Mr Nsekela said during the seminar.
Mr Nsekela, who is also CRDB Group Chief Executive Officer, said they have come up with petty traders ‘Machinga’ package because this cluster has huge demand for loans and their number is big.
“Lending the sector was now possible after the government issued 670,000 IDs to entrepreneurs countrywide whose business capital does not exceed 4m/-,” he said.
Last year alone CRDB had issued 421.58bn/- to entrepreneurs. Opening the seminar, Morogoro Regional Commisioner (RC), Dr Stephen Kebwe commended the bank initiative to lend Machingas saying the move will help them to expand their businesses while fostering government ambition to attain semi-industrialised economy by 2025.
The RC also hailed CRDB for being in the frontline to support agriculture sector through Fahari Kilimo product. The RC urged the entrepreneurs, who attended the seminar, to seize the loan opportunity opened by the lender, especially on agrisector, to grow their businesses quickly.
Morogoro has a suitable land for agriculture especially sugarcane, rice, cotton, cashew nuts, coffee and sisal.
Apart from the empowerment seminar, the Machingas were also given the chance to air their opinion on how to better the lender services in general.