Thursday, 10 July 2014

SMID Bank to lend Ks 20 billion to SMEs

The Small and Medium Industrial Development Bank plans to grant loans worth Ks 20 billion to small and medium enterprises this month.

“We are checking to approve SME loans for applicants. The lending date is not confirmed yet but it will be within this month. We are expecting to lend a total amount of Ks 20 billion in which Ks one billion loans will be provided to 15 states and regions,” said San Thein, the senior advisor of the bank.

He said that in order to get the loan approval, the applicants must submit the detailed proposal for borrowing to Small and Medium Enterprises Development Centre under the Industry Ministry.

Subsequently the bank will do the checking and verifying procedures.

The interest rate will be at 8.5 percent and each loan will vary from Ks 20 million to Ks 500 million based on collateral.

According to the ministry, more than 120,000 SMEs are currently registered and over 99 percent of registered SMEs are doing in local businesses.

The government has formed agencies, centres, committees and banks for SMEs.

Since June 30, Myanmar Insurance under the Finance Ministry has started selling policies that the SMEs can buy and use in lieu of collateral for bank loan.

source: Eleven Myanmar
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