Myanmar Tourism Bank (MTB) launched new non-collateral loans with interest rates, 14 percent for business to improve tourism industry

The Myanmar Tourism Bank (MTB) has launched a new product. It has begun offering non-collateral loans with interest rates as low as 14 percent for businesses in the tourism industry, as well as for small-to-medium sized enterprises (SMEs).

U Andrew Khant, Deputy Managing Director of MTB, said: “The Central Bank of Myanmar has set the maximum interest rate for loans with collateral at 13 percent. For loans with no collateral, it set a maximum 16 percent interest rate. So we can set our interest rates at 14 percent for this type of loan, and we will be able to practice relationship pricing.”

Relationship pricing, or relationship-based pricing (RBP) is a pricing and billing framework where the pricing is determined by a customer’s overall purchases and circumstances, as opposed to it being delivered on a product-by-product basis.

For new business startups, or for those that are expanding, the bank will provide loans of K1-K3 million for three months, K4-6 million for six-month loans, up to K10 million for a one-year term, K20 million for a two-year term, and as much as K50 million for a loan on terms of three-years.

“If the business is strong and has great potential for growth,” U Andrew Khant added, “the owner can get a one-year or three-year loan. This depends, of course, on the performance of the businesses.”

Myanmar Tourism Bank was established with capital of K22 billion, and will provide 5 percent of its profit to tourism organizations and government agencies related to that industry. All of this is an attempt to develop the tourism industry in Myanmar.

The bank headquarters in Myanmar, and plans to open ten branches in Mandalay and Naypyitaw.

The Central Bank of Myanmar issued a license to the Myanmar Tourism Bank in July 2018, adding it to the existing number of three state-owned banks, 27 local private banks with 1,800 branches, and 12 foreign banks and branches then operating in the country.

(Myanmar Business Today: https://www.mmbiztoday.com/articles/new-loans-mtb-bank-designed-improve-tourism-industry )

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