How it works

As an Absa customer, you also have access to an unsecured facility to help you pay for your insurance premium. Whether you are insuring your car, house or household contents, let Absa lift the financial burden and pay the premium on your behalf while you handle more important matters.

Insurance premium financing is a short-term loan offered to individuals and entities to cover a cash-flow gap during the time of purchasing a new policy or renewal of an existing policy.

Client is required to apply for an IPF Loan and once approved, Absa will remit the full premium with VAT to the insurer listed on our panel who has an account with Absa. The client will then repay the IPF loan over the instalment period chosen.

IPF is offered for most products except travel insurance, individual/family medical insurance and individual life insurance. Group life assurance and group staff medical is covered under IPF among other general insurance products like motor insurance, business-related insurance, etc.

Benefits and features
  • Loan tenure: minimum 3 months; maximum 10 months
  • Minimum deposit: 2 instalments
  • Affordable interest rate on reducing balance method
  • Breakdown of instalments payable is provided to client for repayment assessment
  • Min IPF amount (premium + VAT): TZS300,000
  • Maximum loan size (premium + VAT): TZS500,000,000
  • Administration fee: 1% of the loan value (not premium value) minimum TZS30,000
  • No collateral or security is needed to apply for the loan
  • Quick application process
  • No need to obtain credit life cover
  • A detailed requirement for IPF application can be shared with you depending on the product and type of customer (individual/entity).
To be eligible for IPF, you must
  • Obtain insurance from one of the Absa-approved insurance providers. Visit a branch or speak to an adviser to obtain a list of approved insurers
  • Have an account with Absa
Documents required to apply
  • Completed IPF application form
  • Premium quotation from insurer
  • Other document may be requested depending on the insurance type