News Column

Microlender Targets Low Income Earners

February 20, 2014

K-Finance Limited yesterday introduced to the market 'housing improvement loan scheme', an initiative targeting, low income earners owning unfinished houses.

The company's Chief Executive Officer, Ms Devotha Minz, told the 'Daily News' in an interview that K-Finance would be providing loans ranging between 200,000/- and 50m/- to entrepreneurs and individuals.

"The initiative aims at empowering low income earners to have decent homes," she said.

She said K-Finance Limited, a micro-credit, business mentoring and insurance firm, is also dedicated in providing skilful education called 'REVUKA' to entrepreneurs on how to do business efficiently and profitably.

Ms Minz said further that her microfinance firm has so far disbursed loans to more than 3,000 people since its establishment in 2008.

She said SMEs have low default rate as 98 per cent of borrowers repay the loans. It is estimated that all the Microfinance Institutions (MFIs) in Tanzania put together serve a combined client population of about 400,000 SMEs, which is only around 5 per cent of the total estimated demand.

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Source: AllAfrica

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