MAB to pro­vide SME loans with­out col­lat­eral

The Myanmar Times - Weekend - - Business -

MYAN­MAR Apex Bank Ltd (MAB) will pro­vide loans for SMES based only on the com­pa­nies’ in­come and ex­pen­di­ture, se­nior MAB of­fi­cials an­nounced.

At an event to un­veil the new fi­nan­cial prod­uct at the bank’s head­quar­ters on Thein Phyu Road, Bo­tah­taung Town­ship, on Wed­nes­day, bank of­fi­cials said that the loans, which will not re­quire col­lat­eral, will be made an in­ter­est rate of 8.5 per­cent.

“With tech­ni­cal as­sis­tance from Ger­man state-owned de­vel­op­ment bank KFW, our SME loans will be based on in­come and ex­pen­di­ture. There will be an eas­ing of re­quire­ments for guar­an­tees,” said U Kyaw Ni Khin, se­nior eco­nomic of­fi­cer.

“MAB will be of­fer­ing four types of loans based on work­ing cap­i­tal and fixed in­vest­ment that will be ben­e­fi­cial for en­trepreneurs”, said Mr Frank Mueller, team leader for bank­ing ad­vi­sory at Ger­man in­ter­na­tional con­sult­ing com­pany In­ter­na­tional Pro­ject Con­sult (IPC).

Un­der the new of­fer­ing, SMES can ap­ply for a max­i­mum of K100 mil­lion at the in­ter­est rate of 8.5 pc. The loans can be for up to one year for25 pc of a bor­rower’s work­ing cap­i­tal or up to five years for up 75 per­cent of a bor­rower’s fixed in­vest­ment.

MAB also plans to of­fer big­ger loans of up to K500 mil­lion at 13 pc in­ter­est for one year for work­ing cap­i­tal or three years for fixed in­vest­ment, Mueller said.

MAB has al­ready is­sued loans to­tal­ing K50­bil­lion to SMES, and this fig­ure us pro­jected to in­crease thanks to the new prod­ucts.

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