Restricted businesses are real estates, finance and insurance services, jewelry businesses, alcohol shops, firearms and ammunitions, gambling, casinos, agriculture services that affect the environment and society, unlawful activities such as drugs and other drug-related businesses are restricted from applying a loan.
FAQ
Yes. If the applied loan amount is yet met its maximum, SME owner can apply more than one bank.
Based on business’s condition, collateral and risk level, interest rate is from 5.5% to 10% per annum. Loan tenor is minimum 2 years to maximum 5 years.
When applying for SME Long Term Investment Loan powered by JICA the requirements needed as collaterals are lands and buildings.
SME owner should allocate 80 percent of the loan on fixed asset investment and 20 percent on Working Capital Investment.
For example, for the fixed asset investment 80 percent can invest on machineries, warehouse, equipment, and business expansion. 20 percent of Working capital investment can utilize on raw materials for your business.
A local SME that is registered in Myanmar at least 2 years in lifetimeand those align with SME Development Law (2015) can apply SME Working Capital Loan.
Finance and insurance services, gambling, such as casinos, firearms and ammunition, activities that affect the environment and society, unlawful activities such as drugs and other drug-related businesses are restricted from applying a loan.
If the SME business owner agrees to the loan amount and terms, the bank must proceed with the fire insurance. The fire insurance company will be notified by the relevant insurance company through the bank. Fire insurance premiums must be paid before the SME loan is issued by SME loan applicants.
Quotation must be requested from your suppliers where you purchase the equipment or raw materials. Quotation must include the type of equipment or raw materials you are going to buy, price, model number, photo and shop address. If you have a previously purchased voucher, you will need to attach it.
You must submit details business plan such as which machinery or building or equipment that you are going to invest with the applied loan.