This study analyzes the effects of Bank lending rates on economic growth in Tanzania since 1980 to 2017. Bank lending rate was not studied in isolation, they were some additional variables studied, like rate of inflation, investment and rate of exchange whose effects to the economic growth were additional established. The objective of the study is to look out the relationship on how bank lending rate affects economic growth. Data were obtained through secondary sources from Bank of Tanzania and World Bank, also the methodology used was error correction model to examine the results of bank lending rates on GDP growth in Tanzania. Error correction model analysis, shows that bank lending rate, and investment are positively associated with economic growth while inflation rate and exchange rate are negatively related to economic growth. Bank lending rate, investment and exchange rate are found to be significant determinant of economic growth however not inflation rate. It is therefore recommended that the government should have policies in places to look at the lending rate, same to significant variables that are investment and exchange rate.