Law and practice relating to securities for housing loans in Tanzania

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University of Dar es Salaam
This work attempts to examine the law and practice relating to securities for housing loans in Tanzania. It is focused on the legal and practical aspects of the Tanzania Housing Bank's (T.H.B.) lending operations. THB is not a bank stricto sensu. It is a financial institution. However, like all other lending institutions in Tanzania, it has to abide by established commercial principles and laws. As a creditor, the Bank always demands and accepts some security for the advances it makes in order to ensure, as a matter of last resort that the money lent out is repaid together with the interest agreed upon. The study investigates three hypotheses. The first is that, although THB is required by the law to operate according to accepted commercial principles, that is by demanding and accepting adequate security for loans given, it appears that this requirement is not strictly adhered to. Secondly, THB need to reconsider the types of security to accept from its clients, especially those borrowing for construction on unsurveyed areas. Thirdly, it would appear that THB itself partly contributes to the problem of poor repayment of loans. The work is divided into an introductory section and six chapters. The first gives a brief account on the concept of security against advances and its application in Tanzania. Chapter two highlights the various credit institutions in Tanzania which were and are still providing housing loans. The third chapter discusses special funds administered by THB. Various forms of securities demanded and accepted by THB are examined in the fourth chapter. Realization of THB securities and related problems are discussed in chapter five. The last chapter concludes the work and gives some recommendations.
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Housing, Finance, Law and legislation, Tanzania
Ngalomba, F. (1992) Law and practice relating to securities for housing loans in Tanzania, Masters dissertation, University of Dar es Salaam. Available at (