YETU Microfinance Bank housing loans for rural residents reached 3.5bn\/- with repayment closed to hundred per cent.<\/p>\n
The bank, listed on Dar es Salaam Stock Exchange (DSE) alternative market, said the loans, which is up to 10m\/-,have assisted rural dwellers to improve their houses.<\/p>\n
Yetu Managing Director Altemius Millinga said the house improving loans use the same property as collateral and repayment is 99 per cent.<\/p>\n
\u201c The biggest market for house financing is in the rural and most of our clients pay before time,\u201d Mr Millinga said during Yetu\u2019s IPO seminar to reporters.<\/p>\n
The bank current issued the loan that attracts 19 per cent interest to Kilwa in Lindi, Masasi in Mtwara, Kilombero, Ulanga and Malinyi in Morogoro.<\/p>\n
\u201c The problem is not the loan\u2019s interest rate\u2026 since borrowers are paying before grace period of four years,\u201d Mr Millinga said.<\/p>\n
Yetu is working in partnership with Microfinance Housing Fund, managed by bank of Tanzania (BoT) in providing rural house loan.<\/p>\n
In 2018 , the micro-lender closed the year with a total gross loan portfolio of 14 .5bn\/-.<\/p>\n
While its Return on Equity (ROE) stands at 16 per cent was also above country average of 12.5 per cent and Africa average of 15 per cent.<\/p>\n
Yetu non-performing loans ratio stands at 6.0 per cent in 2017 and 2018 well below the industry rate of over 11 per cent for both years. The country\u2019s benchmark is 5.0 per cent.<\/p>\n
The bank currently want to raise 2.0bn\/- through a second primary offer at 550\/- a share after putting into the market over 3.6million shares.<\/p>\n
The bank said the raised fund from the IPO will enable it to expand its services in the existing areas of operation and to new frontiers namely Njombe, Iringa, Ruvuma and Mbeya.<\/p>\n
Yetu, since listed on Dar es Salaam Stock Exchange (DSE), assets based doubled to 15bn\/- in 2018 from 7.0bn\/- in 2014 .<\/p>\n
In 2018, the bank made a net profit of 708m\/- compared to 376m\/- in 2015, which is a compound annual growth of 23 per cent.<\/p>\n
The bank operates three branches namely Mbagala and Mzizima in Dar es Salaam and Mngeta in Morogoro and 16 financial services centres located in the same region.<\/p>\n","protected":false},"excerpt":{"rendered":"
YETU Microfinance Bank housing loans for rural residents reached 3.5bn\/- with repayment closed to hundred per cent. The bank, listed on Dar es Salaam Stock Exchange (DSE) alternative market, said the loans, which is up to 10m\/-,have assisted rural dwellers to improve their houses. Yetu Managing Director Altemius Millinga said the house improving loans use […]<\/p>\n","protected":false},"author":84,"featured_media":4222,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[2264,886,2157],"class_list":["post-4221","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-altemius-millinga","tag-dse","tag-yetu-microfinance-bank"],"yoast_head":"\n