Working Capital Loan is aimed at Small and medium-sized entrepreneurs to obtain the necessary working capital. It is an assets-based loan.
- Minimum 2 years of business operation
- Maximum loan amount of 650,000,000 Kyats
- Loan period of 1 to 3 years
- Interest rate - 10 to 14.5% p.a.
- Must be a local business/company and owned by Myanmar citizen.
- Must possess immovable properties to use as collateral.
- Business license and Municipal license
- SME Recommendation Letter and SME Member Card (for CGI loan)
- Business Profile and Future Business Plan
- List of items to be purchased (incl. quotation)
- Building Layout Plan and Estimate Budget Plan from developers is needed if the business plan includes building factory (or) warehouse (or) expanding the restaurant
- Copies of NRC and certificate of the applicant’s household list
- Financial Statement for 3 years (if requested)
- Receipts of income tax for the last 2 years
- Tax receipts (Municipal tax, Commercial tax, Meter bill, Water bill)
- Monthly bank statement (CB bank statement for 6 months and other banks for 1 year)
- Business Photos (Front, Back, Left, Right)
- If the business is in the Food and Beverage industry, recommendation letter from the Ministry of Health (or) FDA Certificate is needed
- Business Registration
- Company Profile
- NRC & Household list certificate
- Meeting Minutes
- Forms(105/106)
- Sales and purchase contract(s) of collateral
- Title Deeds of collateral (30 years, 60 years etc.)
- Declaration with good faith
- Collateral photos (Front, Back, Left, Right, Inside)
- Tax receipts of collateral (Water bill, Meter bill etc.)
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.
No, there is no limitation on its allocation but loan must be aimed to use according to its submitted business plan.
Land and building could be used as a collateral when applying for SME Working Capital Loan.
SME Term Loan’s repayment is from 1 year to 3 years and its interest rate is 10% p.a.
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.
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.
You must submit details business plan such as which machinery or building or equipment that you are going to invest with the applied loan.
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.
If the SME business owner agrees to the loan amount and terms, 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.
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.