Africa-Press – Tanzania. The government has said one percent (1%) charged by Tanzania Agricultural Development Bank (TADB) on the total loan amount applied is used to cater various expenses including project appraisal and collateral related issues.
Minister of Finance and Planning, Dr Mwigulu Nchemba said the criteria used to charge loan application analysis fees depends on market forces and time.
Minister Nchemba gave the explanations at the Parliament in Dodoma, Wednesday, when he was reacting to MP Halima Mdee’s question. In her question, the lawmaker wanted to know why the Bank charges the rate.
In his response, Dr Mwigulu said the procedure is common practices for financial institutions to charge the loan application fee.
He said if the loan is not approved, 0.5 percent of the paid amount (1percent) is being cost refunded applicants.
