Insurance Premium Finance

Insurance Premium Finance is a loan product for payment of annual premium in advance. The bank's customers pay their insurance premiums on equal monthly installments at manageable interest rates consequently, reducing the impact of lump-sum payments to their insurance companies or brokers.

Target market - SMEs and corporates with a relationship with multiple insurance policies for fixed or current assets. Minimum exposure of TZS 1 million and aggregate of TZS 2.5 billion.

  • A tripartite agreement between the bank, insurance (underwriter) and the company is to be drawn and executed by all parties governing the entire facility
  • The IPF will be given for a period to a maximum of ten months- the first-month premium is to be paid upfront
  • Security: postdated cheques (dated seven days in advance) and/or a standing instruction to debit account on payment due date
  • Policies endorsed by the insurers to be submitted to be bank after payment of premium
  • The policy will be canceled and or terminated if the installment goes unpaid for more than seven days
  • Commercial assets and or residential (on an exception basis)
  • Principal and interest payments are to be paid monthly failure of which necessary recovery action will be initiated

The bank will charge a flat rate of interest as illustrated below, however, the bank reserves the right to adjust the rates accordingly depending on the prevailing market conditions

3 months flat rate (USD): 3.25% flat rate (TZS): 6.50%
4 months flat rate (USD): 3.50% flat rate (TZS): 6.75%
5 months flat rate (USD): 3.75% flat rate (TZS): 7.00%
6 months flat rate (USD): 3.00% flat rate (TZS): 7.25%
7 months flat rate (USD): 4.25% flat rate (TZS): 7.50%
8 months flat rate (USD): 4.50% flat rate (TZS): 7.75%
9 months flat rate (USD): 4.75% flat rate (TZS): 8.00%
10 months flat rate (USD): 4.25% flat rate (TZS): 8.25%