Acccess to finance has been one of the major challenges to Small and Medium Enterprises (SMEs) as majority can not access financing from bank due to lack of registered Collaterals, for that reasons SIDO initiated establishment of Credit Guarantee Scheme with finanial support from Agricultural Food Aid Counteter part Fund  funded by the Goverment Of Japan.
The Objetive of the Scheme is promote and support SMEs which have a significant role in the economy by creating ebabling environment for  them to access finance  from Commercial  banks with minimal collateral they have.
The target group are  growth oriented SMEs mostly engaged in Agro proessing and Agri businesses who have successfully graduated from SIDO financing scheme such as National Enterpreneurship Development Fund (NEDF) and Regional Revolving Fund (RRF), SMEs offered with other SIDO Services or Programs such as Technology, Marketing, Training and Extension Services, MUVI, KAIZEN, CLUSTERS et.c
is a new lending  program  implemented by SIDO and CRDB Bank PLC currently  in sixteen (16) regions   i.e  Morogoro, Dodoma, Singida, Manyara, Arusha, Kilimanjaro, Mbeya, Iringa, Tanga, Mwanza, Dar es salaam, Njombe, Ruvuma, Pwani, Mtwara and Kigoma .
The Program intends CRDB Bank PLC  to provide loan facility  to SMEs investment and business promotion activities  that are specified by SIDO.
1.Target Business: Agro Processing and Agri Business
2. Application Fee: 05 % (Paid to CRDB Bank)
3. Guarantee Fee: 1 % (Paid to SIDO)
4. Interest rate: 17% (On Declining method)
5. Statutory Charges paid to Regulatory Authorities
6. Collateral: Traditional and Non Traditional includes Landed Properties, Guarantee from close relatives with title deeds except non traditional securies, Stock under Collateral Management,  Motor Vehicle owned by borrower ( 5 years from first registration in the country) , Shares listed at Dar es salaam stock exchange ( Excluding CRDB shares) , Fixed Deposit Account and Malkia Account ( Monthly Saving Plan for Women offered by CRDB Bank)
7.Target regions: Six teen regions  (Morogoro ,Dodoma, Singida,  Manyara, Arusha,  Kilimanjaro , Mbeya, Iringa, Tanga, Mwanza, Dar es salaam, Njombe, Ruvuma, Pwani, Mtwara,  and Kigoma.
8. Loan Limits : From Tshs.10,000,000/= to Tshs.50,000,000/=
9. Repayment period: From 6 to 36 months including grace period
In Credit Guarantee Scheme , loans are extended through SIDO and CRDB Bank PLC  subject to the applicant qualifying on the following:-
1.The project must be viable dealing with Agro processing and Agri business including Poultry/Livestock Keeping (Both Working Capital and Investment)
2. Growth oriented SMEs who have successfully graduated from SIDO financing program such as National Enterpreneurship   Development Fund (NEDF) and Regional Revolving Fund (RRF) with good records and SMEs offered  with other SIDO Services/Programs .
3. Borrowers  must be ready to provide Collaterals  apart from guarantee.
4. Borrowers must be an adult Citizen of Tanzania residing in the pilot regions
5. Project to be financed must be legally registered
6. The borrowing Enterpreneurs must possess or ready to open a valid bank account at CRDB Bank