Local lender KBZ Bank has launched Myanmar’s first credit card recently, eyeing to tap into big businesses and high-income individuals’ needs for credit card in the country.
Launched late last month, there were 500 applicants at the beginning, which has grown in its first week to 600, according to KBZ officials.
U Nyo Myint, managing director of KBZ Group said, “We are the first bank to provide credit card services in Myanmar. If everyone complies with the rules and regulations, make payments in time and cooperate, this will be successful.”
Business owners who already have accounts with KBZ, government officials and high-income members of the private sectors holding KBZ accounts are eligible to apply for credit cards, the bank said.
KBZ is providing five types of credit cards – Platinum, Diamond, Gold, Silver and Classic, with K5 million, K3 million, K2 million, K1 million and K300,000 credit limits respectively.
Daw Swe Zin Win, general manager of Credit Card Department, KBZ Ltd, told Myanmar Business Today, “The service is only for customers who have KBZ account or businesses who are working with KBZ. If it is successful, the service will be expanded. Foreigners will not be allowed to apply for credit cards as of now.”
“The money spent on the credit card should be paid back within 45 days. If three late payment occurs, the account will be suspended,” she added.
U Than Cho, senior managing director of KBZ, said that the interest rate will be 13 percent per year and 1.1 percent per month. Contracts made with companies will allow them to use credit cards for buying items, while cash can be withdrawn from banks and ATMs.
There are 328 KBZ Bank branches in Myanmar, with 89 in Yangon and 37 in Mandalay.
Source: Myanmar Business Today