Vision Fund Micro Finance Bank Tanzania Amana Bank Zanzibar - Tanzania

ACCESS TO CAPITAL

TITLE

Vision Fund Tanzania Microfinance BANK 

SUMMARY

Vision Fund Tanzania Microfinance is a World Vision property. It has about 650,000 clients in Tanzania.

CONTENT

ABOUT VFT BANK

Vision Fund Tanzania is owned by Vision Fund International, the World Vision microfinance subsidiary which incorporates all of the World Vision microfinance activities. Vision Fund International serves over 650,000 active loan clients. Vision Fund International is differentiated by its integrated approach in working with World Vision’s community-based development efforts to address rural poverty.
Vision Fund Tanzania (VFT) is currently the fourth largest and the most rapidly growing MFI in Tanzania

FINANCIAL PRODUCTS

1. Premium Loan

Features:

• Interest of 2% flat p.m.
• 2.5% of loan amount processing fees
• Compulsory saving 5% of approved loan amount
• 6-24 Months loan term
• Monthly payment
• Top up is allowed from 3^rd cycle, clear repayment history and with 50% payment of existing loan

Benefits:

• Clients that have grown their businesses out of poverty are supported to maximize according to their capacity to pay

2.     MKOMBOZI LOAN

Features:

• Loan Paid at Maturity
• 3-12 Months loan term
• Interest 5% flat per month
• Compulsory savings 10% of approved loan amount
• 5% of the approved loan amount as loan processing fee

Benefits:

• Group guarantee
• Loan can help customer in farm care and child well being
• Flexible loan amount will help the farmer to meet his/her farming needs.
• Both repayments and interest are paid during harvesting period
• Interest payment waiver for prepayment.

3.     KILIMO LOAN

Features:

• Loan paid at Maturity and interest rate is paid on monthly basis
• Credit life revolving fund 1% of loan amount
• 3-12 Months loan term
• 10% Cash Collateral
• Monthly amortization of interest

Benefits:

• Clients get loan depend on their capacity
• Negotiated security or guarantee
• Balloon is paid at harvest
• Interest waiver for prepayment

Contact Details

Main Office

Vision Fund Tanzania Microfinance Bank Ltd.
Headquarter, Afrika Mashariki Road 
Arusha International Conference Center (AICC), Fifth Floor , Serengeti Wing
P.O Box 1546, Arusha, Tanzania 
Phone Number: +255 0800 258 723
Office Hours: Monday to Friday 8:00 AM TO 5:00 PM 

Website:  www.vftz.co.tz 

ABOUT AMANA BANK

Amana Bank is a commercial Bank in Tanzania established in 2011. As a fully compliant sharia bank, the bank serves over 34,000 customers using Islamic banking systems throughout Zanzibar and some regions of Tanzania mainland. The Bank offers products and services that meet the needs of not just the Muslims customers but everyone who wishes to join the bank services. It aims at playing a meaningful role in fostering economic development and social progress in Tanzania. Employing over 250 Tanzanians, Amana Bank hopes to contribute to the development of knowledge and expertise in Islamic banking and finance in Tanzania.

1.    SOLIDARITY GROUP FINANCING

This product is designed to cater for the needs of small group of entrepreneurs, formal and informal sectors employees and businessmen which previously could not meet the financing criteria. The facilities aim to help growth of small business through financing working capital, assets based, and other services.

Loan features and Benefits

• It is a shariah compliance financing
• Minimum amount to an individual entrepreneur in the group is TZS 300,000/= and maximum amount is TZS 4,000,000/=.
• Payment period is up to 12 months.
• Weekly repayment will be set up according to the agreement between the bank and customer.
• The entrepreneur shall belong to formed groups vetted by the Bank;

Loan Requirements

• Group members must be resident of the same market center/community;
• Close relatives such as spouses, children, parents, siblings etc. must not be members of the same Saving Group (SG);
• The member shall receive loan approval from members of the group;
• Must be 18 years of age and above
• Must possess valid voters’ registration card, national identity card or passport;
• Must have been banking with the Bank for at least one month,
• Must deposit a certain percentage of financing amount set by this policy as security;
• Must contribute on weekly basis to the Saving Insurance Fund (SIF) a certain amount to be set by the Management;
•  Must have letters of recommendation from the local leader of their place of residence and confirmed by all group members.

2.    ELIMU FINANCING

This product is tailored to cater for students school fees in different levels of education ranging from primary level education to higher level education; various courses leading to diplomas, degrees offered by registered academic institutions that are accepted by Amana Bank.

Loan features for Elimu Financing

• Sharia Compliant financing arrangement
• Finance courses that are acceptable by sharia.
• Facilities are issued for students attending local or overseas academic institutions.
• Flexible and reasonable repayment periods.
• The financing amount is flexible
• Flexible collateral arrangement.
• Maximum payment period of up to 12 months.

Requirements

• For Elimu financing to work, there must be a Memorandum of Understanding (MoU) between Amana Bank and the respective academic institutions.
• The applicant should have account with Amana Bank.

3.    HOUSE FINANCING

House financing is a product designed to solve the problem of increasing demand of accommodation. The product is structured under unique Sharia Compliant Mode of Islamic Banking, Diminishing Musharakah. Through this structure the customer owns the house gradually until he/she eventually becomes the sole owner of such house.

Loan Features for House Financing

• It is Based on Sharia Compliant Mode of Finance; Diminishing Musharakah
• The same House will be Taken as Security or Part of Security
• Max Tenure – 15 Years
• Max Amount – 100 Mil.
• Client’s Contribution, Minimum 20%
• Age of Client at Expiration of Contract, < = 60 Years
• Property Insurance 1%
• Transfer Fee to be Borne by Client

Contacts

ZANZIBAR BRANCH
Malindi, Darajani
House No. 19/1 at Kisiwandui,
Urban District
Zanzibar
P.O. Box 9771
Tell: +255 659 075 144/3
Fax: +255 22 2 129 013