YANGON – The Small and Medium Industrial Development (SMID) Bank will loan Ks 20 billion to 60 small-and medium-sized business people by the end of this month after a meeting of its board of directors, the bank has said.
The SMID Bank started giving loans to entrepreneurs at the end of August. Currently, the bank has provided loans to 12 small-and medium-level business people.
SMID Bank chairman Dr Than Htun said: “The government approved a Ks 20-million budget for loans to small and medium enterprises (SMEs). This month, we are going to give loans to 40 to 60 entrepreneurs. Now, the Appraisal Team is securitising to give the SME loans. After checking the team, we are going to provide loans to business people.”
Entrepreneurs who want to borrow loans from the government need to get a certificate from their respective state and regional government committees.
Moreover, SMID Bank can only give a loan of up to Ks 100-million as its largest amount for a person, depending on what items they may seek to pawn.
“We [SMID Bank] designated loans of Ks 100 million per person. However, the respective state and regional government committees only supported borrowers for loans of Ks 50 million per person. Due to these facts, we have already lent the money – Ks 50 million each – to 12 business people with an interest rate of 8.5 per cent,” Dr Than Htun said.
The SMID Bank lent loans totalling Ks 10 billion to 62 small-and-medium-scale business people last year. At present, the bank will be extending loans totalling Ks 20 billion.
There are more than 120,000 SMEs registered in Myanmar.
Source: ELEVEN MYANMAR