The Central Bank of Myanmar (CBM) will grant loans without collateral with more than 13 percent annual interest rate

The Central Bank of Myanmar (CBM) will grant loans without any collateral with more than 13 per cent annual interest rate, said Soe Thein, Vice-Governor of the central bank, at a ceremony to sign the credit Bureau Software License between Myanmar Credit Bureau Ltd and Equifax New Zealand Services and Solutions Ltd, at Myanmar Banks Association on December 10.

“The central bank has to grant loans based only on collateral. Now entrepreneurs can take loans with the 13-per-cent annual interest rate by putting collateral up. They can take loans without any collateral. The loan interest rate will be higher than the current rate. It will materialize soon,” he added.

In May, 2018, the CBM allowed the company to provide credit bureau service. Myanmar Credit Bureau Ltd will start providing credit bureau service at the end of 2019. The responsible and accountable individuals and Small and Medium-sized Enterprises (SMEs) can take loans easily and swiftly.

The maximum loan interest rate is 13 per cent per annum and the maximum interest rate on deposits, eight per cent per annum.

(Eleven Media Group: https://elevenmyanmar.com/news/central-bank-to-grant-collateral-loans-with-increased-interest-rate )

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