MSME Development Fund Management Body notified again on 17 February that Micro, Small and Medium Entrepreneurs (MSMEs) can apply for MSME loans at State-owned Myanma Economic Bank (MEB) and Myanma Agricultural Development Bank (MADB) and 16 private banks, to expand businesses, purchase equipment and raw materials.
The interest rates for MSME loans are set at three per cent for at least 30 per cent fixed capital, four per cent for 100 per cent working capital and five per cent for Credit Guarantee Insurance-CGI.
MSME entrepreneurs from Nay Pyi Taw, regions and states can apply for MSME loans through the respective MSME agencies.
The State put K170 billion in the MSME Development Fund and K150 billion will be disbursed for MSMEs. In line with the State Administration Council’s economic objectives, State-owned banks (Myanma Economic Bank and Myanma Agricultural Development Bank) and 15 private banks held a signing ceremony of participation agreement with participating financial institutions (PFI) regarding loan disbursement on 3 October in MEB (head office) in Nay Pyi Taw, in which K150 billion loan will be disbursed at a cheaper interest rate through PFIs.
The managing director of Myanma Economic Bank and PFI’s representatives signed the participation agreements in the presence of the chairperson and vice-chairperson of the fund management task force.
The officials of the state banks and representatives of the private banks elaborated on loan term regulation, loan proposals, documents and loan procedures and responded to the questions raised by the attendees during the signing event.
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