Land sector as an impediment to mortgage lending in Tanzania
Sanga, Christopher
The pervasiveness of problems associated with lending is acknowledged even in Shakespearean times and the lender's risk of losing both his money with the borrowers is aptly captured in Hamlet". Neither a borrower nor a lender be for loan off losses both, itself and friendd" Hamlet: Act 1, scene 3. Mortgage lending is by itself a business in some other countries lucrative and well secured. In Tanzania, few people opt for loans to run business even if the effects of gearing are desirous to use loan/borrowing for investment purposes. It is widely held in financial institution circles that Tanzanians have a culture of defaulting. This why banks give priority to collateral whenever they lend money. The problem is compounded by lack of borrowers' credit risk information that lending institutions could rely in lien of collaterals. Lack of data bank, which can guarantee banks to issue loans.
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