Written by the Kopesha team · Last reviewed 23 September 2026 · No lender pays for these guides · How we write them
1. How much reaches my hand, and when?
Not the approved amount — the amount after every deduction, and the day it arrives. If fees or compulsory savings come off the top, you are borrowing more than you receive and paying interest on the difference.
2. What is the total I will repay?
One number, in shillings, including everything. Write it down in front of them. This single question removes more misunderstanding than any other.
3. How many installments, how much each, and on what dates?
Ask for the schedule on paper. Check the first date especially — some loans start the week after disbursement, which can land before your first sale.
4. Is the interest on the full amount or on the balance?
Flat or reducing balance. On a six-month loan at the same quoted rate the difference can be a third of what you borrowed, so this is not a technicality.
5. What are all the fees, by name?
Processing, insurance, valuation, registration, savings, statement fees. For each: how much, when, and whether it is deducted or added. "Small charges" is not an answer.
6. What happens if I pay late?
The penalty, how it is calculated, and whether it compounds. Also the practical part: after how many days do they visit, and who do they call?
7. What am I pledging, and what can you do with it?
Name the item and the process. Who values it, who holds the documents, what notice you get, and whether a court order is needed. If it is your house or your only machine, take the answer home and sleep on it.
8. Can I pay early, and does it cost me?
On a reducing balance, early settlement genuinely saves interest. On flat interest it often saves nothing, and a few lenders charge for it. Knowing this changes how you use a good month.
9. Who do I call when something goes wrong?
A name, a direct number and the office hours — not a general line. The day you need to restructure a payment, knowing who to ask for is the difference between a conversation and a default.
How to use the answers
Write them down in the office, in front of the officer. It is not rude — it is what anybody lending money does, and it changes the conversation. Then compare the sheet with the agreement before you sign. Where they differ, ask why, and do not accept "the system prints it that way".
If at any point you are told there is no time for these questions, that is your answer to all nine.
Most of these answers are ones a licensed Tier 2 lender is already obliged to write into your agreement. Regulation 39 requires the effective annual interest rate including all fees, the method used to calculate the interest, the late-payment penalty, any recovery charges and the total of all payments. Asking for them is not being difficult; it is asking for what the agreement must contain anyway.
Sources
This article is general information about borrowing in Tanzania. It is not advice about any particular lender, and the worked examples are examples only — not a quote or an offer from anybody.
Advertisements