Myo Sandar/Myanmar Business TodayIn a move to assist SMEs and contribute to the country’ economic development, the SME Development Bank is set to offer cash flow budget (CFB) loans requiring no collateral from the borrowers.
The loans will be provided to SMEs in the agricultural sector (rice and corn), livestock breeding sector (fish, shrimp, crab, chicken, cow) and manufacturing sector (foods, consumer products, garments).
In addition, the bank will provide CFB loans to other SMEs that create jobs and promote exports. Loan consideration will be based on the business’s development.
Myanmar citizens aged 20 to 60 whose business has been in operation for at least two years are eligible to apply for the loans. Applicants must have a membership card in an SME organization and provide required documents. The maximum amount of loan available to each applicant is K5 million.
To date, the government has provided local SMEs with K30 billion in collateralized loans and K7.393 billion in Credit Guarantee Insurance (CGI) loans. SMEs have also benefited from 20 billion yen in loans from JICA (Japan International Cooperation Agency), K200 billion loans from Myanma Economic Bank and 15.3 million euro loans from German Corporation for International Cooperation (GIZ).
There are over 73,000 SMEs in Myanmar, according to Ministry of Industry data.