SME-Credit Guarantee Insurance Loan (SME CGI Loan)

SME-Credit Guarantee Insurance Loan (SME CGI Loan)
Expand your business with loans without collateral.

SME CGI Loan scheme is a special financing scheme for the development of Myanmar SMEs by government-owned Myanmar Insurance and CB Bank. Both the bank and Myanmar Insurance jointly share the risk of the loan. You can receive financing under SME CGI scheme without collateral and the maximum loan amount you can apply is 20 Million MMK. You can apply for more than 20 Million MMK according to your business needs by providing collateral. However, the loan amount will be approved by CB Bank based on the business plan and the appraised value of the collateral if any.

Features and Benefits
  • Collateral- free loan of up to maximum loan amount of 20 Million MMK.
  • Repayment period of 1 year.
How does it work? (Step by step process)

These are six steps to apply SME CGI loan:

  • Customers must apply for the SME Recommendation Letter and SME Registration card from SME Development Center.
  • SME Development Center issues the SME Recommendation Letter and SME Rgistration card to customers.
  • Customers apply for the SME CGI loan at CB Bank.
  • CB Bank applies for the Credit Guarantee Insurance (CGI) from Myanmar Insurance.
  • Myanmar Insurance certifies the loan applications.
  • CB Bank issues the SME CGI loan to customers.
Rates and Fees
  • Interest rate – 10% p.a. (Payable to CB Bank)

Myanmar Insurance Premium Fee (Payable to Myanmar Insurance):

Loan

Year 1

Year 2

Year 3 and above

With Collateral

2%

1.5%

1%

Without Collateral

3%

2.5%

2%
Requirements

Eligibility:

  • Holders of SME Recommendation Letter and SME Member Card.
  • Must be a local business/company and owned by Myanmar citizen.
  • Minimum 2 years of business operation.
USEFUL INFORMATION

SME Development Center (Ministry of Industry):

 No. (192), Kabar Aye Pagoda Road, Bahan Township, Yangon, Myanmar.

Ph: 01-8605590, 01- 8605591
FAQs
How can customers apply for SME CGI Loan?

A local SME that is registered in Myanmar at least 2 years in lifetime and those align with SME Development Law (2015) can apply SME CGI Loan.

If I have a collateral to apply for SME CGI Loan, what will the loan amount be?

Customers applying for SME CGI Loan with collateral have no limitation on credit limit. But the loan amount will be determined by the bank based on business plan and collateral.

What are repayment terms and interest rate for SME CGI Loan?

Interest rate is 10% p.a.

E.g. principal 20million MMK x interest rate 10%/12month = 166,666 MMK (monthly interest)

Interest is charged monthly whilst principal payment could be in every 3 months, 6 months or yearly depending on customer’s business plan.

How is CGI Premium fee calculated in Myanma Insurance?

SME CGI Loan

Year 1

Year 2

Year 3 and above

Premium fees (with collateral)

2%

1.5%

1%

Premium fees (without collateral)

3%

2.5%

2%

Note: Collateral price will be valued by CB Bank and Myanmar Insurance.

Where can I apply SME recommendation letter?

SME Development Center (Ministry of Industry): No. (192), Kabar Aye Pagoda Road, Bahan Township, Yangon, Myanmar. Phone: 01- 8605591