Tanzania's Ministry of Finance issued a borrower warning during a financial literacy outreach in Mwanza, urging prospective borrowers to read and understand all loan contract terms before taking credit from financial institutions to avoid problems linked to stringent terms or high interest rates that can undermine repayment. The message, delivered in the context of rising borrower complaints, highlighted concerns about high interest charges, strict repayment conditions and unclear penalties when borrowers fail to meet loan terms. Borrowers who do not fully understand an agreement were encouraged to seek legal or financial advice before signing, and to avoid borrowing from informal financial providers that may impose oppressive conditions. The Ministry’s outreach team also noted ongoing challenges with some financial service providers not complying with applicable laws and regulations, with the government expected to continue regular monitoring and take disciplinary action; the financial education programme is being carried out under the 2021/2022 to 2029/2030 Financial Sector Development Master Plan.

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