Equity Bank Tanzania has come up with a goal driven account which depositors save for at least six months and borrow three-times of savings collateral free.
The account, Jijenge, which went into operation also has a flexible loan payment model and attracts no whatsoever deductions but pays interest for deposits starting 3.0per cent.
Equity Tanzania Head of Commercial Department Isabella Maganga said the idea behind the account was to enable one to realize his or her planned goal by starting saving in advance.
“We want an account-holder to start saving earlier in a bid to realize his/her goal after saving for six months, a year or two years… “‘Jijenge’ has no extra charges for keeping the account and no collateral needed to get a loan…your saving acts as your securities,” Ms Isabella told journalists.
She said the account sole idea was to enable one mobilizes deposits which at the end of the day use the amount to access a loan three times the saving amount.
“This Jijenge account is for all citizens and non-citizens. One comes at the bank and tell us what his or her goal, say for one year, and we’ll work out suitable ways to mobilize savings to reach his or her goal in short time possible,” Ms Isabella explained.
Those eligible to open Jijenge account are individuals, groups—say a family members or religious followers, Vicoba, Saccos, partners and the like, who have a goal to achieve in a certain period.
The bank said the loan repayment period is between one and 15 years at very attractive interest rates—which are the lowest in the market.
“Repayment depends on depositor’s ability to pay back and the goal set…it’s not based on one- size fit all,” Ms Isabella said.
After opening the account in minutes, one can deposit money at either 14 branches country wide or at 4,271 agents scattered across the country.
The bank, the largest in East Africa, also eased the hassle of account opening and it takes a flick of a finger as they only need a national ID or its number to complete the process.
Equity is a pan-East African bank and operates in Kenya, headquarter, Uganda, South Sudan, Rwanda, and Ethiopia as unit. The bank is in seven positions in Africa and has a balance sheet of 14.3tri/- as per last year.