SME Business Expansion Loan powered by KfW

SME Business Expansion Loan powered by KfW

Business Expansion Loan powered by KfW

Financing your fixed assets purchase to free up your cash flow!

Business Expansion Loan powered by KfW is supported by KfW Development Bank, a German government owned bank, with the aim of providing sustainable and need-based financing to Myanmar SMEs. The purpose of the loan is to provide financing for investment in fixed assets such as purchasing new machineries, factory construction, factory renovation, restaurant expansion and more.

The invested fixed assets can also be pledged as collateral. Loan applicant required to make a commitment of 10% to 20% of the total investment value.

Features and Benefits
  • Suitable for start-ups businesses as young as 6 months.
  • Easy to manage your cash flow with amortization repayment.
  • Borrow up to 100 Million MMK
  • Flexible repayment period of up to 3 years
  • Flexible interest rate from 8.5% to 13% p.a. (based on the nature of your business)
  • Collateral can be purchased fixed assets
RATES AND FEES
  • Flexible Interest rate – 8.5% - 13% p.a.
REQUIREMENTS

Eligibility:

  • Must be a Myanmar citizen aged 18 to 70
  • Minimum 6 months of business operation
  • Companies with at least 51% private ownership
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FAQs
How can customers apply for SME Business Expansion Loan powered by KfW?

A business owned by Myanmar citizens, over 51% ownership of the company with at least 6 months old business license and those align with SME Development Law (2015) can apply SME Business Expansion Loan powered by KfW.

How can SME owner allocate loan from SME Business Expansion Loan powered by KfW?

SME owner can allocate 80 percent of the loan to fixed asset investment and 20 percent to Working Capital Investment.

For example, for the fixed asset investment 80 percent can be used in machineries, warehouse equipment, and business expansion. 20 percent of Working capital investment can be used is raw materials for your business.

Do I need to have a collateral to apply for a SME Business Expansion Loan powered by KfW?

Yes, you are necessary to have collateral for example land and building to apply for an SME Business Expansion Loan powered by KfW. Or the collateral could also be a machinery that you are purchasing with the Bank loan.

What are the interest rate and loan tenor of CB Bank’s SME Business Expansion Loan powered by KfW?

Interest rate is 8.5% per annum and loan tenor is up to 5 years.

How does CB Bank’s SME Business Expansion Loan powered by KfW repayment terms work?

By amortization method, principal and interest are required to repay monthly.

How much can I borrow for SME Business Expansion Loan powered by KfW?

You can borrow up to 100 million MMK.

Which criteria are taken into account when choosing SME Business Expansion Loan powered by KfW applicants?

Individual SME’s business plan and schedule, quotation, business sector condition, resource, quality, financial record management, business management, work experience and expertise are taken into account when choosing SME Business Expansion Loan powered by KfW applicants.

What types of businesses are restricted from applying for a loan?

Illegal and prohibited companies, Counterfeit consumer goods manufacturing businesses, manufacturing and trading of machine guns, gambling and drug-related businesses, those harm the natural environment and employees, businesses employing underage workers, stock Investing in treasury bonds and real estate, political related are restricted from applying for a loan.

How much capital is necessary to contribute by SME customer?

You must contribute at least 10% to 20% of the investment.

E.g. If the value of the equipment to be purchased with the loan is 100 Mill kyats, it is necessary for the business owner to contribute at least 10% (10 Million kyats) to 20% (up to 20 million kyats). If the business owner owns the land and applies for a building loan, the business owner will need to apply for a loan to cover the cost of building the building with the land contribution.