The Ministry of Industry plans to proportionally allocate SME loans to regions and states next year

Ministry of Indus­try is planning to proportionally allocate loans for Small and Medium Enterprises (SMEs) to the regions and states next year.

SMEs loans are reported not to reach every SME across the country. Enter­prises in major cities such as Yangon and Mandalay have more advantages to get loans, for they know and follow the rules bet­ter and handle the finan­cial statistic better, and more systematically while the enterprises in rural towns, on the other hand, lack knowledge on how to follow the rules and pro­cedures to get loans.

‘‘People in remote places such as Chin and Kachin can’t get loans if they go straight to the bank, so we will allocate loans propor­tionally. So they will get equal access to the loans and more opportunities,’’ Daw Aye Aye Win, Direc­tor General of the Minis­try of Industry.

Therefore, loans for SMEs by the government or international govern­ments or organization will be allocated propor­tionally to the regions and states from next year on.

The government has granted over K59 billion to SMEs from 2016-2016 Fiscal Year to mid-June 2017, according to the official data that U Khin Maung Cho submitted to Pyithu Hluttaw, the lower house, on November 17.

Loans from the Japa­nese government have been granted to 11 enter­prises in 2015-2016 Fis­cal years, 175 enterprises in 2016-17 Fiscal Year, 83 enterprises up to mind June 2017 as two-step loans through six private banks to which Myanmar Economic Bank grants the loans.

Loan for SMEs can be applied at SMEs Devel­opment Bank, Myanmar Apex Bank, AYA Bank, KBZ bank, CB Bank and Myanmar Citizen Bank under Credit Guarantee Insurance, the loans will be granted after Myanmar Economic Bank checks the assessments carried out by the banks.

(Myanmar Business Today: https://www.mmbiztoday.com/articles/sme-loans-be-allocated-proportionally-regions-and-states )

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