SME Long Term Investment Loan powered by JICA

SME Long Term Investment Loan powered by JICA

Long Term Investment Loan powered by JICA

Long Term Investment Loan powered by JICA is another special financing scheme available for Myanmar SMEs, cooperated with CB Bank, financed by Japan International Cooperation Agency (JICA) under the bi-lateral government agreement. Eligible businesses will enjoy the subsidized interest rate.

Applying for a Long-Term Investment Loan powered by JICA, essential to provide immovable property such as land and building as a collateral. The loan tenor is 1 to 5 years. The maximum loan amount is 500 Million MMK. The main criteria for JICA Two Step Loan are needed to invest in Fixed Asset for at least 80% of total loan amount and required to utilize 20% as a Working Capital.

Features and Benefits
  • Entitled for businesses that are at least 2 years in company lifetime as well as to extend the business such as investing on building factory (or) warehouse, upgrading machines, buying new machines, expanding the restaurant, etc.
  • Offering with attractive Interest Rates
  • Up to 5 years of flexible repayment period
  • Maximum offering limit -  up to 500 Million MMK
RATES AND FEES
  • Interest rate – 5.5% - 10% p.a. (Special Interest Rate for Eligible SMEs)
REQUIREMENTS

Eligibility:

  • Must be a local company and registered in Myanmar
  • Required to possess immovable properties to use as collateral
  • Essential invest at least 80% of loan amount in fixed assets.

Note: Long Term Investment Loan powered by JICA is annually, semi- annually or quarterly distributed to various commercial banks through Myanmar Economic Bank by the JICA. As such, the available loan amount each year may varies depending on the amount of JICA’s financial intermediary loans allocated to each institution.

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FAQs
How can customers apply for CB Bank SME Long Term Investment Loan powered by JICA?

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.

How can SME owner allocate loan from SME Long Term Investment Loan powered by JICA?

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.

When applying for SME Long Term Investment Loan powered by JICA what are the requirements needed as collateral?

When applying for SME Long Term Investment Loan powered by JICA the requirements needed as collaterals are lands and buildings.

What are the interest rate and loan tenor of CB Bank’s SME Long Term Investment Loan powered by JICA?

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.

Can SME Long Term Investment Loan powered by JICA be apply with more than one bank?

Yes. If the applied loan amount is yet met its maximum, SME owner can apply more than one bank.

What types of businesses are restricted from applying for SME Long Term Investment Loan powered by JICA?

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.