I.

LIST OF DOCUMENTS/ INFORMATION REQUIRED FOR CREDIT

APPLICATION PROCESSING.
1. Mandate to Borrow
i. Board resolution of the borrowing company.
ii. Application letter indicating:
 Type and amount of credit required.
 Purpose.
 Source of repayment and proposed repayment plan.
 Proposed Security.
ii. A recent credit bureau report.
2. Certified Copies of Legal and Regulatory Documents.
i. Memorandum and Articles of Association.
ii. Certificate of company registration/incorporation.
iii. Valid business license.
iv. Recent annual returns filed with the Registrar of Companies.
(BRELA).
v. TRA tax clearance certificate.
vi. VAT and TIN certificates.
vii. Maximum Liability Certificate from Registrar of Cooperatives (for
Cooperative borrowers).
viii. Valid title deed (see section 4 below)
ix. List of all necessary permits / approvals including OSHA, TFDA,
NEMC, Local Government (Municipal, etc.) permits.
x. Environmental Impact Assessment Certificate/ Report including
Terms and Conditions attached to the Certificate.
xi. Approved Drawings and Bills of Quantities (BOQ) stamped by a
registered consultant / approved authorities.
xii. Copy of building permit.
3. Company Operations
i. A comprehensive feasibility study (business plan),incorporating
among others:
 History and details of company operations (company profile).
 Information about the industry, the borrower’s position in the
industry and the competitive environment.
  Description of the products, delivery mechanisms, reliability of
markets, marketing strategies and competitive advantages.
 Source, reliability and pricing of inputs/raw materials
including list of major suppliers.
 Details of the company shareholders/Directors and
management team (CVs).
 Shareholding and Directorships in other companies.
 Financial projections covering the period for which the facility
is requested. Please itemize all the assumptions.
ii. Audited annual accounts for the past three years.
iii. Latest interim financial statements (management accounts).
iv. Existing and previous banking relationships for the last 2 years
(disclose all borrowings, securities offered for the other bank
borrowings and where applicable attach bank statements).
v. Information on related companies (sister companies).
vi. List of major debtors/customers with contracts terms and value of
contracts where applicable.
4. Security
i. Brief description of tangible/immovable collaterals, featuring:
 Details of proposed security i.e. type, location and estimated
value with supporting documents.
 Residual period of ownership (not less than 15 years).
 Land use reflecting intended project use (e.g. Industrial,
Commercial etc.)
 Evidence of being current with land rent & service charges
payments.
 Proof of non – encumbrance (Search certificates from land
registry).
 Valuation report and valuation report receipt.
ii. Brief description of other securities to be pledged.

II. LIST OF REQUIREMENTS AFTER CREDIT APPROVAL

i. Signed/Accepted letter of offer.
ii. Board of Directors Resolution accepting the facilities on the terms
and conditions of the letter of offer.
iii. Valid original title deeds and other securities as described in 4
above.


For loan exceeding TZS 1 billion, accounts must have been audited by one of TIB approved auditors
(Auditors approved by BOT for banks)

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iv. Valuation report of the mortgage properties being not more than 6
months old and that will have been carried out by TIB approved
valuer and stamped by the Chief Government Valuer.
v. Valid insurance policy as described in offer letter.
vi. Evidence of payment of appraisal fees in full.
vii. Fulfillment of all conditions precedent as per offer letter.

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 TIB Development Bank Ltd

INFORMATION REQUIRED IN FEASIBILITY REPORTS OR BUSINESS PLANS

The following summarizes the principal components to be incorporated in the

feasibility reports or business plans. Loan applicants may, however, incorporate
other relevant information to support their proposals depending on the type of
project.

1. Project description:
i. Explain what business the project wishes to undertake and what the
project involves.
ii. Describe the relevant economy and industry factors surrounding the
project.
iii. Show the nature and particulars of the project company including
shareholders and directors, financial standing and business history.

2. Sponsorship, governance and technical assistance:

i. Provide history and business track record of sponsors, including their
financial information.
ii. Describe governance structures and assurance systems.
iii. Describe technical arrangements and other external assistances
(management, production, marketing, finance, etc.).

3. Management and Management Information Systems

i. Attach a detailed organisation chart.

ii. Provide the proposed management arrangements, including names and
curricula vitae of managers.
iii. Provide information on the key personnel, lines of operations and posts
held, present positions and descriptions of duties & responsibilities.
iv. Provide details of the planning, controlling, monitoring & systems,
existing and those to be put in place.

4. Technical feasibility, manpower, raw material resources, and

environment:
i. Brief description of production process.
ii. Comments on special technical complexities and need for know-how and
special skills.
iii. Possible suppliers of equipment.
iv. Availability of infrastructure facilities (transport and communications,
power, water, etc.).
v. Requirements for and availability of skilled and unskilled manpower.

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 vi. Breakdown of projected operating costs by major categories of
expenditures.
vii. Source, cost, quantity, quality and reliability/sustainability of raw
material supply and relations with support industries.
viii. Import restrictions on required raw materials.
ix. Proposed plant location in relation to suppliers, markets, infrastructure
and manpower.
x. Proposed plant size in comparison with other known plants of similar
type.
xi. Present and potential environmental issues and how these issues are
addressed.

5. Investment requirements, project financing, and expected returns:

i. Estimate of total project cost, broken down into land, construction,
installed equipment, furniture and fittings, motor vehicles, and working
capital, indicating any foreign exchange components.
ii. Proposed financial structure of venture, indicating expected sources and
terms of equity and debt financing.
iii. Types and timing of financing required and amounts.
iv. Projected financial statements, sensitivity, profitability, and return on
investment.
v. Critical factors determining viability and profitability.

Tabulate the proposed project costs as follows:

Estimated Project Costs (TZS or USD or EUR)

Item Existing Proposed/Additiona Total
l
Foreign Local
Land and Buildings
Plant and Equipment
Ancillary Vehicles
Commercial Vehicles
Office equipment
Total Fixed Assets
Working Capital

Total Project Cost

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Tabulate the proposed financing plan as follows:
Financing Plan (TZS or USD or EUR)
Source Existing New Funding Total Gearing
Local Foreign
Promoter's Equity
Other Bank loan*
Other Bank O/D*
TIB Loan
TIB O/D
Total Finance
* Attach details

6. Markets and sales:

i. Indicate the basic market orientation: local, national, regional, or
international.
ii. Provide the projected production volumes, unit prices, sales objectives,
and market share of proposed venture.
iii. Describe the potential users of the products and distribution channels to
be used. Indicate present and anticipated sources of supply of
similar/competing products.
iv. Analyse future competition and possibility that substitute products may
satisfy market.
v. Discuss tariff protection or import restrictions affecting products.
vi. Analyse critical factors that determine market potential.

7. Industry Dynamics
Highlight key industry players and benchmark project performance and
standing in the industry compared with competitors. Show market shares
of the various key industry players. Include the following:
i. The project’s competitive advantages vis-à-vis other players, giving
details of the critical success factors.
ii. List of major competitors and their market shares.
iii. Market share of the applicant company, present and future.
iv. List of major buyers with details of their selling terms.
v. List of major suppliers with details of their terms of purchase.
vi. Key industry risks and how the proposal mitigates them.
vii. Description of the trade cycle of the business.
viii. Seasonality of the operation giving details of peak and slack seasons.

8. Government/donor support and regulations:

i. Describe the project in the context of government economic development
and investment facilitation programs.
ii. Indicate specific government incentives and support available to project.

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iii. Show expected contribution of project to economic development.
iv. Outline government regulations on exchange controls, conditions of
capital entry and repatriation, etc. and their impact on the project.
v. Indicate nature and extent of any donor support.

9. Security and risk mitigation

i. Describe the proposed security arrangements.
ii. Indicate specific risk mitigation measures to be adopted.

10. Timetable envisaged for project implementation and completion.

Provide detailed implementation plan and financing sequence.

11. Economic Benefits and Environmental Issues