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Tanzania Private Loan Agreement

Tanzania private loan agreement template. Repayment schedule, interest, default, mobile-money payments.

Click any field to edit · this is a template, have a Tanzanian advocate review before signing

Private Loan Agreement

This Loan Agreement is made on [DATE] between the Lender and Borrower named below.

Parties

Lender

[FULL NAME / COMPANY] · TIN: 000-000-000 · P.O. Box [—], [CITY] (the "Lender")

Borrower

[FULL NAME] · NIDA: 0000-0000-0000-0000 · TIN: 000-000-000 · P.O. Box [—], [CITY] (the "Borrower")

WHEREAS the Lender has agreed to lend a sum of money to the Borrower on the terms set out below, and the Borrower has agreed to repay the same.

NOW THEREFORE the parties agree as follows:

1. LOAN AMOUNT

The Lender shall advance to the Borrower the principal sum of TZS [AMOUNT IN FIGURES] (Tanzanian Shillings [AMOUNT IN WORDS]) (the "Loan").

2. DISBURSEMENT

The Loan shall be paid by [bank transfer to A/c [—] / mobile money to Lipa Number [—]] on or before [DATE].

3. INTEREST

The Loan shall bear interest at [RATE]% per annum on a [reducing-balance / flat] basis. Interest shall accrue from the disbursement date.

4. REPAYMENT

The Borrower shall repay the Loan in [N] equal monthly instalments of TZS [—] each, payable on the [—] day of each month, with the final instalment due on [DATE]. Payment shall be made by bank transfer or mobile money to the Lender.

5. EARLY REPAYMENT

The Borrower may repay all or part of the outstanding balance at any time without penalty. Interest shall cease on the repaid portion from the date of receipt by the Lender.

6. DEFAULT

If the Borrower fails to pay any instalment on the due date, the entire outstanding balance plus accrued interest shall become immediately due and payable. Default interest of [—]% per month applies on overdue amounts.

7. SECURITY

The Loan is [secured by [DESCRIBE SECURITY] / unsecured]. [If secured: The Borrower shall execute the appropriate security documents.]

8. REPRESENTATIONS

The Borrower represents that: (a) the Loan will be used for [PURPOSE]; (b) the Borrower has authority to enter into this Agreement; (c) all information provided is true.

9. GOVERNING LAW

This Loan Agreement is governed by the laws of the United Republic of Tanzania. Disputes shall be referred to the courts of Tanzania.

LENDER (Signature · Name · Date)

BORROWER (Signature · Name · Date)

WITNESS 1 (Signature · Name · Date)

WITNESS 2 (Signature · Name · Date)

Stamp duty 1% applies to mortgages and debentures; private loan agreements above TZS 1M attract a fixed stamp fee. Get the Borrower signature witnessed by two independent adults.

Private loans in Tanzania — write it down

The single most common cause of loan disputes between friends, family and businesses in Tanzania is the absence of a written agreement. Even close relationships benefit from clarity in writing — and Tanzanian courts almost always reject oral evidence of loan terms in favour of any written instrument.

What a loan agreement must show

Lender and Borrower full identification (TIN, NIDA).
Principal amount in figures and words.
Interest rate and basis (flat or reducing).
Repayment schedule — frequency, instalment, final date.
Default consequences and rate.
Security (if any).
Two independent witnesses.

Reducing vs flat — pick reducing

Tanzanian banks use reducing balance for transparency. For private loans we recommend the same: interest accrues only on the outstanding principal. Avoid "flat" or "compound monthly" — these are confusing and often legally challenged.

Tax considerations

Loans to/from a connected company need transfer-pricing documentation if cross-border.
Interest received is taxable income for the Lender (10% withholding for non-residents).
Stamp duty on mortgages and debentures is 1%; private unsecured loan agreements normally attract a fixed stamp fee.

Enforcement

If the Borrower defaults: send a Letter of Demand first (see template), wait the stated period, then file in the appropriate court (Primary up to ~30M, District/Resident up to ~100M+, High Court above). A signed agreement with witnesses dramatically simplifies the case.

Pair with Loan Calculator to size the schedule, Letter of Demand for default, and Withholding Tax for non-resident interest.

Frequently asked questions

Is the Tanzania Private Loan Agreement free?

Yes. Every Tawala tool is free to use, requires no signup, and runs entirely in your browser. We do not log or store any value you enter.

Are the figures up to date for 2026?

Yes. We track changes to TRA rates, statutory contributions and sector tariffs and update affected tools the same week any change is gazetted.

Can I use this on mobile?

Yes — every tool is mobile-friendly and works on any phone with a browser. No app install required.

Where do the formulas come from?

Each calculator is built from primary sources: TRA Acts and Practice Notes, NSSF Act regulations, NHIF tariffs, BoT rates and ministry gazettes. We add a citation and date stamp at the foot of each tool.

Want this automated for your business?

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