“A Bank” will provide K 10-300 million loans to local small and medium enterprises aiming to help the development of SMEs sector

Ayeyawaddy Farmers Development Bank widely known as ‘A Bank’, will provide K10-300 million in loans to small and medium enterprises, the loans will be given with the aim of helping them improve, according to the Department of Industrial Supervision and Inspection.

The loans include operating loans, fixed asset loans, invoice financing, green investment loans, and agricultural contract loans, according to A Bank.

The terms of the loan are three years with 13 percent annual interest rates in addition to repayment of 3 percent of the service fees every month. The loan payments must be made every month or every three months.

To obtain operating loans and fixed asset loans, customers must provide documents of ownership for assets such as buildings, cars, and jewelry. These must be provided in addition to other paperwork such as bank statements for the last year, personal information, company business plan, copy of membership card, and tax clearance form.

Moreover, the customers for the loan must have sole ownership of a business and be between the age of 20 and 65.

The government is also provided loans to SMEs with the goal to nurture the SME sector which produces over 90 percent of the country’s manufacturing. The government has provided K30 billion in loans that where provide with collateral. Another K7 billion was provided under CGI without collateral. JICA provided 20 billion yen, and Myanma Economic Bank provided K200 billion and Germany’s GIZ 15 million Euro.

There are over 73,000 SMEs registered under the Ministry of Industry.  

(Myanmar Business Today: https://www.mmbiztoday.com/articles/bank-provide-loans-local-business )

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