THE Deputy Minister for Finance and Economic Affairs, Mr Omar Yussuf Mzee announced in Parliament today that the government has allocated 19bn/- for loans, saying preparations were underway for Tanzanians to borrow money from the Tanzania Investment Bank (TIB) for agricultural projects.
This move follows government initiative to facilitate empowering people economically by financing agriculture projects.
To ensure that more farmers get credit from banks the government has set interest rates of between 5 and 8 per cent.
The loans will be recovered for within six (6) to 15 years depending on project requirements, according to the minister.
''The loans are ready. Tanzanians interested in borrowing should lodge their applications at TIB Bank (Agriculture window),'' he said.
In easing farmers access to loans the minister said banks will allow farmers to use land and assets as collateral.
The government would contract agents to distribute farm implements to farmers and provide education on back up services of such tools.
For farmers in remote parts of the country to have access to the funds, the minister said TIB will open zonal branches.
In the meantime, the government has pledged to repair all roads leading to plantations in order ease farmers' access to crop markets.
Mr Mzee was responding to Mr Mbarouk Mwandoro (Mkinga-CCM) who wanted to know what steps the banks were taking to convince local banks to accept MKURABITA title deeds as collateral for loans.
He also said the government was in consultation with other local banks to discuss the possibilities for such banks to issue loans to farmers.
source: daily news
He was responding to Mr Godfrey Zambi (Mbozi East -CCM) who expressed skepticism on the possibility of TIB reaching out remote areas.
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