Collateral-free loans to be available next year
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The Myanmar Economic Bank has teamed up with Japan-based Sumimoto Mitsubishi Bank Corporation to offer loans without any collateral for small and medium enterprises (SMEs), according to the Finance Ministry.
A spokesperson from the ministry said, “SMEs will help develop the country’s economy, so financing programs for SMEs are important.”
He added that it is not easy to get financing in this country.
“To ease the system, new zero-collateral loans will be available for SMEs in 2015. SMBC is currently one of leading financing banks in Japan. We will coordinate with the Japanese bank to initiate the loan process.”
SMEs that that apply for the loans will be reviewed under official rules and procedures. The loan term will be one year, and the loans are limited.
Last June, Myanma Insurance and another private company introduced collateral-free loans for SMEs, but the project failed.
