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Motor Vehicle Loan

Enables customers have access to financing to acquire motor vehicles for personal use. This facility does not cover cars that are exempted from duty.





Minimum loan amount

TZS 5 million or USD equivalent


Maximum loan amount

TZS 100 million or USD equivalent


Maximum repayment period

60 months


Interest rate

Base rate + or – 1%


Processing fees

1% if approved for processing


Customer’s contribution

20% (for both brand new and second hand vehicles)


% of financing

80% (for both brand new and second hand vehicles)



Chattel Mortgage on the vehicle


Insurance cover

Comprehensive insurance policy for the car is mandatory.BANK OF AFRICA - TANZANIA to assist by offering Insurance Premium Financing or arrange for this from the various insurance partners. 2% life insurance against death or permanent disability to be arranged.


Turn around time

1 week for facilities less than TZS 50 million

2 weeks for facilities above TZS 50 million

Terms and conditions

Total loan repayment should not exceed 1/3 of their net salary.

The interest rate is on a reducing balance basis.

The bank can revise the interest rates depending on the market conditions without prior notice to the customers.