Independent firms to get more loans
The Small and Medium Industrial Bank (SMIDB) says it will grant a further Ks20 billion to small- and medium-sized enterprise (SMEs).
“We will lend out our remaining funds to SMEs. The loan disbursement in the previous fiscal year amounted to Ks14.75 billion. With the aim of ensuring the development of SMEs, the SMIDB will scrutinise entrepreneurs who apply for the loans,” said an official from the SMIDB.
The bank was largely established to serve SMEs.
With the assistance of the government, the SMIDB is disbursing Ks90 billion taken from the Myanma Economic Bank to SMEs.
The SMIDB plans to disburse, at an 8.5 per cent interest rate, Ks2 billion each to Yangon, Mandalay, Ayeyawady and Sagaing regions and Shan State and Ks1 billion to other regions and states, including Nay Pyi Taw.
The SMIDB loans are only handed out when entrepreneurs have a recommendation from their regional governments. They range from Ks10 million to Ks100 million, based on the collateral. Firms are expected to repay loans within three years.
The availability of capital and technological assistance are crucial to SME development.
According to the Ministry of Industry, there are more than 120,000 registered SMEs across the country, making up 99 per cent of the economy
