NMB extends loans repayment period

The NMB Bank Plc has extended re¬payment period of loans for borrowers on their personal loans based on individual situations arising from Coronavirus.
This is according to the Bank of Tanzania (BoT) guidelines.
NBM Bank said recently at the Business Club Ilala District aimed at enhancing financial education and exchanging ideas with businesses, along with the bank receiving their views and advice and working on them to accelerate the development of its members, but also to promote new NMB products.
Opening the forum, Alex Mgeni, the bank’s Head of Business Banking said they are aware of the tough business environment facing members of the NMB Business Club and their customers due to the adverse effects of the novel COVID-19 pandemic.
“In respect of the BoT’s guidance, we as NMB have decided to offer the relief to their customers in terms of an extension to their loan period. This is because our clients and business community have been adversely affected by the pandemic. Borrowers can now reach out to the bank and start the exercise,” Mgeni said.
He added that their customers, including members of the business clubs are victims of the COVID-19, due to the closure of their business activity, saying the central bank guide¬lines have facilitated them to see the need to discuss with them and extend loans repayment.
He pointed out that due to the relief measures, the flow of repayments from traders and their customers has continued to improve, with 80 per cent of borrowers have paid through conventional systems, proving the resilience of their capital.
The bank also introduced its products in the market namely, NMB Prepaid Card and NMB Credit Card, along with other services such as NMB Nyanyua Mjengo, NMB Ban¬cAssurance and NMB Mkononi.
In May, 2020, the central bank urged banks and other financial institutions to assess financial challenges faced by borrowers triggered by the pandemic in re¬spect of loan repayment, and dis¬cuss the possibility of restricting of loans or know in other terms as to repayment moratorium.
The BOT also reduced the dis¬count rate to 5 per cent from 7 per cent. This relief had taken effect 12 May. Hence, as local banks get more leeway from the central bank, it is a matter of time, until their ability to save the economy is determined.
Benedict Baragomwa, Chief Financial Officer at NMB Bank said the bank was stable de¬spite the COVID-19 pandem¬ic, adding that the secret of the success is the resilience of NMB Business Club members and their customers in general.
Christopher Mgani, Relation¬ship Manager-Large Corporate at NMB praised the club mem¬bers on how they handled the coronavirus crisis, advising them to meet with their branches countrywide and see how they can address their challenges.
“As a result of the pandemic, it was necessary to meet with and share your experience with our managers, so that together you could identify new ways to deal with the crisis in order to grow your business without affecting your loans repayment,” he noted.
The business club contrib¬utes a lot to equip NMB cus¬tomers with entrepreneurship skills and improve the private sector performance in general.