Why households now bank on business income to repay loans
Tanzania, May 29 -- Dar es Salaam. Households in Tanzania have shown an increase in moving away from reliance on salaries alone to service loans, with business income emerging as the leading supplementary source of debt repayment, a new Bank of Tanzania (BoT) survey shows.
According to the Tanzania Financial Stability Report, business earnings account for 26.6 percent of non-salary income used to meet loan obligations, signalling a growing shift towards entrepreneurship and diversified household income streams.
The report indicates that borrowers are increasingly combining wages with multiple sources of income, including pensions, dividends, agriculture, allowances, remittances and rental income, in a bid to strengthen repayment capacit...
Click here to read full article from source
To read the full article or to get the complete feed from this publication, please
Contact Us.