The Parliamentary Budget Committee has praised the Bank of Tanzania (BoT) for introducing a system that allows borrowers to compare loan fees and charges across financial institutions, saying it could help consumers make informed borrowing decisions and improve transparency in the lending market.
The committee made the commendation on Friday, October 23, 2026, during a presentation by the central bank on the performance of the loan fee and charges comparison system and the implementation of the interest rate-based monetary policy framework.
Committee chairman and Maswa West MP Mashimba Ndaki said the system would enable borrowers to assess the costs of loans offered by different financial institutions before committing themselves to repayment obligations.
“This system will help citizens understand the fees and charges associated with loans. This transparency will also enable them to make the right choices. We commend you for that,” Mr Ndaki said.
However, the committee called on BoT to intensify public education campaigns to ensure more Tanzanians understand how to use the system and access information on borrowing costs before entering into loan agreements.
Mr Ndaki said the central bank should expand access through various digital platforms, including mobile phone services using Unstructured Supplementary Service Data (USSD) codes, to reach more people.
Such channels could make the information accessible to borrowers who may not have reliable internet access, helping them compare lending costs before choosing a financial institution.
Its effectiveness will depend partly on public awareness and ease of access, particularly among borrowers who may struggle to compare the full cost of credit across lenders.
The committee's call for wider public education and access reflects the importance of ensuring that the system reaches ordinary borrowers and provides practical support in making financial decisions.