Exclusive interview with Mr. Sultan Marenov, CEO and MD of Hayman Capital Co.,Ltd, which provides micro finance services for local small and medium enterprises

7 มิถุนายน 2561

Hayman Capital based in Singapore is providing micro finance services for local small and medium enterprises, and they have been doing business in Myanmar for a few years now. Myanmar Business Today (MBT) talked to Mr. Sultan Marenov, the CEO and MD of Hayman Capital Co., Ltd, about the future plans of company, and the loan policies of the government. 

MBT: First of all, we’d like to know why Hayman Capital chose Myanmar for its operations.

SM: One of the main reasons of choosing Myanmar is because the country has been inviting new investments. For some kind of services like ours are given full percent ownership to foreign companies. This is very attractive for foreign investments. Second, there are great opportunities to expand the businesses and people need this kind of service for their activities. If we can meet their needs, it will in turn help us as well as them. That is why we chose Myanmar that offers great opportunities as well as others. Moreover, people want to invest in Myanmar, but don’t have enough knowledge of local consumers. At Hayman Capital, we have international connections, and have studied the market and its needs. We have the advantage of experience. In next five years, we believe Myanmar will have more improvements and economic developments. 

MBT: What is required for loan applications?

SM: There are two kinds of loans: group loans and individual loans. For both kinds of loans, applicants are required to provide a businesses license or documents confirming that it is actually operating. For group loans, they are required to provide documents showing ownership of a house, and a reference with income, as well as a certificate to show your residency at your place for one year. 

MBT: How about the payment?

SM: There are two types loans: group loans and individual loans, and the payment period is 6 to 18 months. In order to help SMEs and entrepreneurs, we grant them K100,000 to K5 million loans. 

MBT: What kinds of people and business apply for loans, and how much is the interest rate?

SM: We provide loans especially for the business owners, and 80 percent of our borrowers are women. The interest rate is 2.5 percent. 

MBT: May I know where does Hayman Capital have branches open?

SM: We have branches in Insein Township, Thingangyun Township, Hlegu Township, Pago Township, Nyaung Lay Bin Town Township, and Pyay Township.

 

MBT: We heard that Hayman Capital is expanding its services in remote areas. So, let me know where you are planning to go.

SM: We have plan to expend in Pathein — but not in the city — and we expect to open early this month. We are also planning to open in Hinthada and Kyonpyaw Townships, as well as Mandaly. So, we will open new branches in Mandalay Township and Ayeyarwady Township. 

MBT: Any other places?

SM: We are preparing to open new branches in Magway, Sagaing, Shan, and Karen State. 

MBT: Will you only be using paper document applications or have plans to adopt online application?

SM: Currently, we will continue using paper applications in person with hard documents, and we won’t change it to online only system. We will keep using both systems. For the online system, there will be three steps: firstly, information checking system in which customer will be able to learn how to apply for loans, and how much left to pay back; secondly, payment methods; and thirdly, withdrawal methods in which customers can withdraw money at nearby locations instead of coming to our office to pick up money. We will keep using in-person applications. As we will be opening new branches to provide information, we will use both methods. 

MBT: When will you launch the online system for applications, making payments and withdrawals?

SM: We expect to launch first step of the system in July, second in September or October, and third at the end of this year. 

MBT: There are reports that Hayman Capital is planning to give $100 million in loans in 3 to 5 years. May I know why?

SM: Because of the demand. There are more and more people who need loans or want to get loans. Most of our borrowers are from different income ranges, lower class to middle class income borrowers have payed back our loans. There are very few cases that we do not it back — it is safe to say no cases. We have carefully designed methods, and a department to help the customers how to pay back when they are late for due payment. So there is almost no case of defaulting. There are more people who want to get our service. Therefore, we plan to increase the number of loans in coming years. 

MBT: Central Bank has recently approved a Credit Bureau, and what is the opinion of Hayman Capital, a micro-financer, on this?

SM: We welcome the move. It is good to have precise statistics. Having the information of the borrower’s credit activities at other banks or micro finance services will help Hayman Capital including other micro-financers. So, it is a good move for the overall sector. 

MBT: Will Hayman Capital work together with the Credit Bureau?

SM: We have a lot of hopes on this, and will work with the bureau depending on how it will operate. I assume it more likely to work with banks at first, instead of micro finance services. Later, it may work with micro-finance services. It will boost the activities and we will be able to give more services. 

MBT: The government has plans to give loans without collateral, what impact do you think that will have on micro-finance services?

SM: It is not directly to the people but to the banks, therefore, there won’t be much impact on the sector because we are trying to reach into the remote areas. We have different objectives — we provide services to improve socio economic life of the people. If government is able to give loans without collateral, it would be good for people in urban areas. Because of the different objectives, I don’t think there will be any impact on the sector. As government will give loan to banks, banks will give loans to the civil servants. We don’t lend to civil servants, but to business owners instead. 

MBT: In an agricultural micro-financing scheme, there are some cases that farmers can’t payback loans. How does Hayman Capital prepare for that? How should other micro-finance Institutions do so?

SM: At the moment, we don’t have that problem. Only 13 percent of our customers are farmers and there is no such case yet. 

MBT: Should you face that situation, how have you prepared for it?

SM: We focus on trade. As we are well aware of this happening. We have three stages: If not paid back for the first month, we will wait; in second month, we will negotiate with the borrower; and in third month, we will attempt to solve this through legal channels. 

MBT: A local company Yoma Bank is working with other MFIs. Does Hayman Capital have plans to join the pack?

SM: Currently, no. We do have plans to work with other institutions. For instance, foreign banks in Myanmar don’t have proper offices, so we will provide our services, our network, and they will provide the financing. Our cooperation with May Bank is showing promise. We cooperated with them last year and also this year. This is a foreign bank in Myanmar, and is not allowed to open offices. Therefore, if foreign bankers want to expand their network or services, it is a good option for them to work with micro-financing institutions like us.

 

(Myanmar Business Today: https://www.mmbiztoday.com/articles/interview-mbt-and-micro-financer-hayman-capital )