SME JICA TSL Emergency Loan powered by JICA

SME JICA TSL Emergency Loan powered by JICA

Borrow up to 300 Million MMK

SME JICA TSL Emergency Loan is the special financing scheme available to those Myanmar SMEs economically affected by Covid-19, supported through CB Bank, by the Japan International Cooperation Agency (JICA).

Features and Benefits
  • Borrow up to 300 Million MMK
  • Repayment period of up to 5 years
  • Interest rate from 5.5% to 10%
  • Eligible for SMEs which are obliged with Small and Medium Enterprises Development Law (2015) and must be truly affected by Covid-19.
Rates and Fees
  • Interest rate – 5.5% p.a. ~ 10% p.a.
Eligibility
  • Applicant must fulfill underlying SME JICA TSL Emergency Loan criteria.
  • Must be obliged with Small and Medium Enterprises Development Law (2015) and must be truly affected by Covid-19.
  • Must be able to run business after SME JICA TSL Emergency Loan powered by JICA is received.
  • Must have a loan repayment capacity.
  • Must have a valid business license.
  • Borrower is required to demonstrate at least 20% reduction in Revenue due to Covid-19 compared to previous financial year (or) if the business started less than one year, borrower is required to demonstrate at least 20% reduction in Revenue due to Covid-19 compared to previous quarter.
  • Existing JICA Two Step Loan customers are also eligible to apply SME JICA TSL Emergency Loan.
  • Must be able to present Emergency Business Plan to apply for the JICA TSL Emergency Loan.
  • JICA TSL Emergency Loan could be used to finance fixed capital, or if necessary, could be used up to 100% for working capital.
  • There will be 6 months grace period for loan approved with tenor up to 3 years and 1 year grace period for loan approved with tenor between 3 to 5 years.
  • Grace period is only eligible for Principal repayment. You will still have to serve the interest repayment according to the repayment schedule.
  • SMEs who can offer collateral to the bank will enjoy reasonable interest rate from 5.5% p.a. and the bank will charge up to 10% p.a. for the relaxation of collateral.
FAQs
What are the interest rate and loan tenor of CB Bank’s SME TSL Emergency 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.

Is there any template for Emergency Business Plan?

There is no template for Emergency Business Plan.

Can I apply Emergency Loan for working capital usage?

Yes, you can apply Emergency Loan for working capital usage and can use on it 100%.

Can I apply Emergency Loan for purchasing new machinery?

For those business affected by Covid-19 are eligible to apply the Emergency Loan for capital investment.

If I have received SME TSL loan with 500 million MMK, can I apply Emergency Loan again?

Yes, you can apply for Emergency Loan up to 300 million MMK again.

Can I apply Emergency Loan more than once?

No, SMEs are eligible to apply for Emergency Loan once.

If my sales are not less than 20% during Covid-19 period, am I eligible to apply Emergency Loan?

Emergency Loan is for businesses that sales went down by 20% during Covid-19 period. But if you do not meet criteria, you can apply other loans.

What is grace period for?

Grace period is only eligible for Principal repayment. You will still have to serve the interest repayment according to the repayment schedule.

If my loan tenor is 5 years, how long is my grace period?

For emergency loan,

Under 3 years loan tenor, grace period is 6 months

Between 3-5 years loan tenor, grace period is 1 years