Tanzania's Ministry of Finance instructs financial institutions to educate borrowers on loan terms before contracts

Tanzania's Ministry of Finance published an update from a financial literacy outreach programme stating that the government has directed financial institutions to provide borrower education and clear disclosures on loan conditions, interest rates, additional charges and the consequences of late repayment before customers sign loan agreements. The message, delivered during the training by a Senior Legal Officer from the Bank of Tanzania (BoT), stressed that lenders should provide accurate information and training ahead of loan contracting so borrowers make informed decisions. The update also noted that the government is continuing to develop policies and guidelines intended to protect borrowers from financial exploitation and support access to credit on more affordable terms, and it highlighted local guidance encouraging community groups to register in order to access government loans and obtain legal support if disputes arise.