EQUITY Bank Tanzania and Bakhresa Group have announced a new agreement to provide loans to traders in efforts aimed to uplift their businesses.

The sustainable initiative aims to offer loans to flour traders, allowing them to borrow up to 300m/- to purchase the product.

During the signing ceremony in Dar es Salaam on Thursday, Leah Ayoub, business director at Equity Bank, said hundreds of flour suppliers and stockists will be able to access the loans easily.

“We recognise that many distributors and entrepreneurs struggle to access capital due to high interest rates. This agreement allows us to simplify our services for customers and distributors of Azam products.

“This loan will be interest-free; instead, customers will pay a commission ranging from 0.5 percent to 1.5 percent, with repayment expected within seven to 30 days,” she said.

She added: “This is an opportunity for quick capital growth. We are committed to supporting entrepreneurs and facilitating easy access to services without unnecessary hurdles. Even customers without an Equity account can open one on their mobile devices to obtain a loan.”

Hussein Sufiani, director of communications at Bakhresa Group, noted that the agreement will assist customers by eliminating the need to seek sponsors or financiers. Instead, they can easily access funds through the bank or online services.

“This service is also digital; you can access it via SMS. There’s no need to visit the bank for transfers; transactions occur automatically once you place your order. As you continue to borrow, the amount can increase,” he said.

He emphasised that the initiative will particularly benefit small customers and encouraged them to take advantage of this opportunity.