NMB Bank Plc has unveiled a partnership with the government to launch a new micro- loan facility,
designed to help their clients survey and register their land to secure title deeds
The plot loan is the first of its kind in the market and will enable people to get their land plots surveyed and registered, thus be in a position to seek a title deed. The loan will be paid directly to the government through the Ministry for Lands, Housing and Human Settlements Development, the government announced yesterday.
The minister, William Lukuvi, said at the launch of the loan scheme that the partnership with NMB Bank is meant to help large numbers of people move more rapidly to formalize their land
occupancy recognition by obtaining title deeds.
He said the government has extended trust to NMB to finance the project that will see hundreds of thousands of land plots being formalized across all districts within the current legislative period.
"Most importantly the plot loan by NMB goes well with government efforts to ensure that every citize owns land and thise living in urban areas get their deeds", he explained.
The loan scheme also makes it easier for bank customers to formally access bank loans, he stated, urging people to take advantage of NMB's plot loan offering.
The exercise started yesterday in Mbalali district of Mbeya region, ahead of being rolled out country wide, with the ministry expecting to achieve land formalisation targets by late 2025, he stated.
Benedicto Baragomwa, the bank’s Acting Chief Internal Auditor, said that after consultation with the ministry, the bank agreed to setting up the loan scheme to help residents in many areas get title deeds for their plots.
“Cash flow challenges have been a major challenge that has hindered the majority of Tanzanians to formally own land, hence NMB’s decision to get a solution by introducing the plot loan facility,” he asserted.
“We are offering micro loans to NMB and non NMB account holders (salaried workers, small traders, small companies and farmers) to support government initiatives for land formalization,” he affirmed.
The NMB Plot Loan scheme is a straightforward, transparent and affordable solution which meets credit needs of customers who might be deterred by the need for idle cash to complete the land
formalisation process, he added.