Small and Medium Industrial Development Bank (SMIDB) provides three year loan of up to K50 million to rice and corn entrepreneurs without collateral

Small & Medium Industrial Development Bank (SMIDB) will provide a three-year loan of up to K50 million to small and medium enterprises (SMEs) engaging in rice and corn production without collateral, according to a product launch ceremony of SMIDB held at Sule Shangri-La Hotel in Yangon on June 7.

"In Myanmar, monsoon paddy as well as summer paddy can be grown. Monsoon paddy can be grown anywhere, but per acre yield depends on weather and geographical conditions. We will render help to rice growing. If there is domestic sufficiency, surplus will be exported to earn foreign exchange. Likewise, corn is an item of value-added goods. So our bank will give loans to corn growers," said SMIDB CEO Dr Zeyar Nyunt.

The loan will be provided with 13 percent interest rate including 1 percent bank service. Entire loans will not be disbursed and it depends on stages of a business. Loan will be stopped if a businessman uses it in other different businesses.

"When we grow paddy, there are 16 stages. If we set K400,000 for one acre in all the 16 stages, the entire amount will not be given as a whole. We will provide loans step by step," said Dr Zeyar Nyunt.

According to the product launch ceremony, about K100 billion will be provided to education, export/import and agriculture sectors.

Loan applications must be sent to SMIDB branches from June 7 to 12 noon of July 16. 

(Eleven Media Group: http://www.elevenmyanmar.com/business/14088 )

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