By Felix Andrew
A local debt collecting firm in Tanzania has confirmed to recover millions of shillings from loan defaulters including students who took loans from foreign commercial banks in United Arab Emirates.
Managing Director of Harvest Tanzania Limited, Joseph Mambia told Azania Post in a telephone interview today that under ongoing crackdown they have managed to recover the money, but he didn’t mention an actual amount, promised to release data soon.
“There are some faithful borrowers who have agreed to our call and started to repay the loans, but we will continue with the exercise countrywide. I do not have total number of Tanzanians who have repaid their loans to the bank, for now,” he said.
According to him, currently firm has a list of 700 defaulters in Tanzania, who took loans from the said banks ranging between USD 5,000 and 50,000 each.
The loan recovery assignment is being conducted by a local debt collection firm, Harvest Tanzania Limited in partnership with Dubai First Security Group LLC.
The banks the money was borrowed are RAK, Emirate National Bank of Dubai and the Commercial Bank of Qatar.
Experts say in order to reduce the rate of loan defaulting, financial institutions are, as a matter of principle, obliged to cross-check with credit reference bureaus to ascertain the credit-worthiness of their potential borrowers.