Co-operative Bank (CB bank) to better serve SMEs applying for loans to develop their business

Co-operative BANK (CB Bank) on Thursday opened a small and medium enterprise (SME) centre in Mandalay to help SMEs apply for loans necessary to grow their businesses. 

 It is the first time an SME centre has been opened in Mandalay and the second of several CB Bank plans to establish across Myanmar.  CB Bank offers three types of SME loans. The SME-CGI loan is worth K20million, the SME-JICA loan is worth K500million and the CB-KfW loan, which is being offered in collaboration with Germany, is worth K100million.

“So far, we’ve provided 300 CGI loans, 50 JICA loans and seven KfW loans. These loans aim to help SMEs around Mandalay receive access to funds as quickly as possible. So far, many Mandalay SMEs have applied for the loans,” said CB Bank’s assistant general manager Daw San Yi Aung. The loans are being offered in accordance with the Small and Medium Enterprises Law.

Although the banks are now more willing to extend loans, the main issue is many SMEs still lack the proper documents and track record to qualify, said Daw San Yi Aung.

So far, more than 400 SMEs have applied for a recommendation letter, which is part of the necessary documentation in the loan application process, from the Industrial Supervision and Inspection Department in Mandalay. 

“We have recommended more than 300 businesses. However, only 14 actually qualified for the loans. Although we provide the recommendations, ultimately those who qualify must meet the bank’s requirements. The difficulties many face is that they do not meet the bank’s requirements because of issues such as not complying with tax regulations,” a spokesperson from the Industrial Supervision and Inspection Department said.

(The Myanmar Times: https://www.mmtimes.com/news/cb-bank-opens-new-centre-better-serve-smes.html )

​