Factors hinders small scale manners to acquire loans from commercial banks in Tanzania

Small scale mining is an important sector to the Tanzanian economy. Its success is impeded by factors of a diverse origin. This research studied the factors hindering the small scale miners to acquire loans from the commercial banks. The research used the triangulation method, embodying several techniques of collecting and analyzing data. Interviews, focus group discussion, participant observation and literature review were the methods used in collecting data. MS Excel was used in graphical presentation of the statistical findings for qualitative analysis of data. It shows that factors hindering the small scale miners to acquire loans from the commercial banks stem from banking policies and conditions, small scale miners' characteristics and government policies and regulations. A main concern to strict bank and government policies and regulations is to protect the depositors' money. Small scale miners being less educated, poor and unskilled they are less considered on lending. As a result it has been difficult for them to acquire loans from the commercial banks. Nevertheless, this sector is important for job creation, financial return and business development. This study suggests that improvement should be done on the lending policies and conditions, as well as services offered by the commercial banks. Government policies and regulations should be amended to allow small scale miners to acquire loans from the commercial banks. Furthermore training on simple technology, business and management skills should be done to enable small scale miners that they can operate their businesses professionally. This will improve their productivity, living standard and add credibility upon their businesses when they consider applying for loan from the commercial banks.