Timiza Vikoba is a savings and credit product for groups of 5 to 50 persons. Group members are required to save weekly regardless of whether they have a loan or not. Loans are offered to members after 4 weeks of savings collection on a staggered rotation basis. The loans are two times the member's savings balance. Both savings and loans are paid using Airtel Money. At the end of the group s life cycle, the members receive back all their total weekly savings together with interest.
What choices can group members make when registering their group?
During registration, the group chairperson chooses the following:
- Group name–a single word
- Group secret code–PIN
- Number of members in their group(5 – 50)
- The weekly payment anniversary day (Sun–Sat)
- The amount to save per week
- The group's tenure (6 months, 9 months or 12months), and
- The tenure of the group's TIMIZA VIKOBA loans (from 4 weeks,8 weeks,12 weeks).
Do I need a bank account to be aligible for a loan?
No, not at all. You however need to have an active Airtel Money account. When you open a Timiza Vikoba account, you will automatically be granted a savings account with Maendeleo Bank PLC .
How many loans can I get at a time?
You can only have one active loan at a time. Once your loan is fully paid, you will be offered a new one.
How much does a TIMIZA loan cost?
The interest rate on Timiza Vikoba loans is 4% per month.
What happens if I am late in making my weekly savings payment or loan repaymet installment?
In case of late payment of your weekly savings or loan repayment installment, you will be penalized for each day that you are in arrears for a maximum of three days. All members of your group will also be notified that you are in default. After the third day, your group will be marked as INACTIVE and members of your group will not receive any loan offers until your account is regularized.
What happens to INACTIVE groups?
In case a group is marked as INACTIVE, it is the responsibility of the group's chairperson (and all members) to liaise with their group members to encourage the defaulting member to meet their obligations before the whole group is affected by the particular non compliant member. If the group remains in an inactive state for 7 days, it will be automatically disbanded and shut down by the system. Any outstanding penalties and loans will be recovered from each member's security savings. In case the security savings of a particular member are not sufficient to cover their obligations, the security savings of other group members will be used to cover the shortfall. The net savings after such set off will be sent back to the Airtel Money wallet of each group member. In such cases of early group closure, no interest will be paid on the savings.
Will I get my securities savings back?
Yes, at the end of your group's chosen tenure, after all loans within the group have been repaid, you will receive back your total security savings plus interest. Security savings cannot be withdrawn before the end of the group's tenure unless by disbanding the group.
How much interest will I earn?
Interest is paid on security savings at the rate of 2% per annum.
What is the duration of the loans?
Loans are repayable in 4 weeks, 8 weeks or 12 weeks. Payment installments fall due each week on the group's selected anniversary savings day.
What if I want to repay early?
You can settle your loan at any time, even before the due date. In order to prepay your loan, your weekly savings must be already paid up to the current week. Thereafter, you simply pay in the outstanding loan balance and the payment will be used to prepay your existing loan. After you prepay your loan, you will be offered another loan if your loan window allows.
How do I qualify for a larger loan?
Please continue paying in your agreed weekly security savings. Since the loan offered is a two times multiple of your savings, each loan that is offered in a new loan window will be of a higher value than the previous one as your security savings balance increases weekly.
What action will be taken on loan defaulters?
If the group's security savings are not enough to cover the defaulter's obligations, the defaulter will be asked to pay the balance. Defaulters may also be prosecuted and further listed with a Credit Reference Bureau in Tanzania.