Refinance and Prefinance loans - Tanzania

1	Funding /risk transfer / both	TMRC sources funding from: (1) Capital (from Existing & New Shareholders); (2) Concessional funding including IDA line of credit; (3) Lines of credit with DFIs, Pension Funds, Collective Investment Schemes etc. and; (4) MTN programs (Capital Markets, Local Currency).
2	Eligible assets	Eligible collateral for TMRC loans include: (1) Mortgage/Housing Finance portfolios of borrowing banks and FI's; (2) Government Securities (for Pre-finance loans), and; (3) Fixed Deposits (for Pre-finance loans).
3	Brief description of structure for each	TMRC raises funds and lends to Primary Mortgage Lenders at a margin.
4	Fees / pricing structure	Pricing is done in line with standard margins approved by the Board for member and non-member banks: 1. Mortgage Portfolios: (a) Member Banks/FI's margin: [1.00-1.50]% (b) Non-Member Banks/FI's margin: [2.00-2.50]% 2. Housing Micro Finance Portfolios: (a) Member Banks/FI's margin: [2.00-4.00]% (b) Non-Member Banks/FI's margin: [2.00-4.00]%
5	Servicing	Primarily, loans are serviced by Primary Mortgage Lenders quarterly (interest only) with principal repaid at the end of the loan tenor. Note: Servicing of each specific loan is mirrored to the structure of the funding source (for funding sources whose structure has principal amortization, the respective loans to PMLs will also follow the similar structure).
6	Risk sharing (if appropriate)	TMRC’s primary recourse is to the borrowing banks in case of default (with a secondary recourse to the security pledged).
7	Other Comments	None