Legal and practical problems in loan recovery over mortgages in Tanzania

This study examines the legal and practical problems faced by banks in recovering loans from their customers. Banks do not normally provide loans unless they are backed up by securities. Problems arise when a borrower defaults and the bank seeks to enforce the security to recover the money. There are different types of securities accepted by banks in Tanzania. One cannot expect problems in the realization of all types of securities to be covered in one single scholarly study like this. The study therefore largely discusses problems faced by banks in recovering money secured by mortgages. The study discusses basic principles in lending and significance of securities for loans. A banker, like any other money lender, has to be assured of the chances of recovering the loan and therefore the need for security. The precautions that a bank is required to take in order to make an informed decision on whether or not to accept a particular piece of land as security are also discussed. The diverse legal and practical problems faced by banks in the realization of securities and Specific problems relating to the realization of mortgages are discussed.