The Bank of Tanzania (BoT) was urged to review policies governing loan issuance from financial institutions.
Monduli district commissioner Frank Mwaisumbe made the appeal during his visit to the central bank’s pavilion at the Themi Nane grounds, the venue of Farmers’ Day.
“It is high time for BoT to consult with the banks and other financial institutions on the matter,” he said.
He said, currently some small business people getting loans had to repay them only after one month after being advanced with the cash.
“This is a burden to them because this is too short a period for their businesses to start making a profit,” Mr Mwaisumbe pointed out.
He also proposed long-term repayment periods for the loans in order to enable the beneficiaries to make a profit from their businesses.
Earlier, the central bank’s senior loan officer John Paul Matinde said they were in contact with the financial institutions on the issue.
He affirmed that BoT would ensure that loans advanced to small-scale business people and other entrepreneurs were devoid of stringent conditions.