The premium on the life insurance is based on the loan amount and the period of the loan.
The annual insurance premium is 0.65% of the loan amount.
The minimum insurance fee is 2000 TZS, and the premium is paid upfront at the time of loan disbursement and deducted from the loan balance.
When your member receives a loan, the insurance premium is paid upfront at the time of loan disbursement. The premium amount is deducted from the loan balance itself.
This insurance aims to safeguard the loan throughout its regular term, starting from the payment of the insurance premium and ending on the last ordinary instalment date of the loan.
The insurance premium cost is calculated based on a percentage of the outstanding loan amount. Specifically, it is determined as 0.65% of the remaining loan balance.
If your loan term is shorter than the regular term, the insurance premium will be adjusted accordingly, but the minimum amount will always be 2000 TZS.