Small-Medium sized Entrepreneurs (SME) will soon be able to receive loans from seven banks, including the state-owned Myanmar Economic Bank. Cumulatively, the banks will loan out an estimated 30 billion Kyats to local businesses.
The other banks providing loans are Kanbawza Bank, Myanmar Apex Bank, Ayayarwaddy Bank, Myanmar Citizen Bank, Co-operative Bank and Small and Medium Industrial Development Bank.
The loan aims to develop the SMEs sector in Myanmar and SMEs entrepreneurs can receive a loan by collaborating with one of the participating banks. The loan amount varies from 15 million Kyats to 500 million Kyats and can be repaid within five years. Applicants must submit applications by October. The interest rate is 8.5 percent if there is collateral offered. Without collateral, there will be an added 2.5 percent to cover for the cost of credit guarantee insurance.
