The Commercial Bank of Africa (CBA) had applied to the Bank of Tanzania (BOT) for permission to give small-scale loans via mobile platforms.
Based on its application, CBA is planning to initiate loans up to TZS 500,000 per applicant using Vodacom M-Pesa mobile money transfer service.
Assessment of applicants’ creditworthiness and financial situation would be done by the bank with the help of mobile service providers.
BOT Legal Counsel Mr George Sije commented: “We are working on the request. The central bank is also preparing guidelines for the lending services through mobile financial services”.
BOT Governor Professor Benno Ndulu mentioned that banks should embrace and adopt new products.