Maximum SME Working Capital Loan is MMK 650 million and the amount of loan is determined depending on individual’s market condition, business’s mission, financial records, management experience and its skillfulness, technology usage, collateral and business plan.
FAQ
There will be a monthly interest charge whilst principal payment could be in every 3 months, 6 months or yearly depending on individual loan amount, tenor and business plan.
SME Term Loan’s repayment is from 1 year to 3 years and its interest rate is 10% p.a.
Land and building could be used as a collateral when applying for SME Working Capital Loan.
No, there is no limitation on its allocation but loan must be aimed to use according to its submitted business plan.
A local SME that is registered in Myanmar at least 2 years in lifetime and those aligned 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 term, 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.