Microfinance companies need approval from the Microfinance Regulation and Supervision Division (MRSD) to provide microloans to government and private-sector employees.

To provide microloans to government and private-sector employees, microfinance companies need approval from the Microfinance Regulation and Supervision Division (MRSD), the regulator said via a statement.
Lenders will not need permission to provide microloans to their own employees, but they need to inform the regulator of their loan-granting process.
MRSD’s statement also said that microfinance companies may not ask for recommendation letters from the department where a borrower works, deduct their salary as loan repayment, or pressure borrowers with loan-default action under the Civil Servant Law and Regulation framework. Furthermore, lenders are required to give government employees and their own employees the same treatment when considering loan applications.
Failure to comply with MRSD instructions will be subject to penalties up to and including license revocation, in accordance with the Microfinance Business Law.
Between 2012 and April 2019, 181 financial institutions registered as microfinance providers.
To tackle the problem of overlapping credit, Myanmar will establish a credit bureau in April tasked with collecting and storing borrowers’ credit history. Microfinance industry stakeholders have pointed out that the problem stems from the lack of formal data on microloans and the fact that the loans are so small.
Myanmar Credit Bureau in December 2018 signed an agreement with Equifax New Zealand Services and Solutions to establish a credit bureau system.

 (Eleven Media Group: https://mmbiztoday.com/microloan-providers-need-mrsd-approval/ )

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