The announcement of loan disbursement condition for JICA (ODA) SME two-step loan project for Phase-1 and Phase-2
In Myanmar, 99% of the registered businesses are micro, small and medium enterprises (MSMEs). People will access more employment opportunities and income increase as the development of MSMEs. Hence, MEB is performing as an Executing Agency (EA) in JICA SME Two-Step Loan Project funded by JICA (ODA) Loan in order to provide loans to MSMEs sector.
In JICA (ODA) SME two-step loan project, any MSMEs which is in line with Small and Medium sized Enterprises Law (2015) can apply for the loan but the following sectors shall be specifically excluded;
- Farmers eligible for borrowing from Myanma Agricultural Development Bank;
- Real estate;
- Finance and insurance;
- Precious metal dealing;
- Bars and pubs;
- Amusement, entertainment (except for tourism);
- Weapons, ammunition; or
- Any other sectors harmful to the social stability (to be judged by Working Committee)
| No | Criteria for JICA (ODA) SME two-step loan project | |
| 1 | Loan limit for each sub-loan | maximum (500) million MMK |
| 2 | Criteria for using loan | maximum 80% for fixed capital |
| minimum 20% for working capital | ||
| 3 | interest rate | from minimum 5.5% to maximum 10%
depends on the collateral |
| 4 | loan term | from 1 year to 5 years |
In Phase-1, the loan can be applied in the following banks (PFIs);
- SME-Development Bank (SMEDB)
- Myanmar Apex Bank (MAB)
- Myanmar Citizen Bank (MCB)
- Ayeyarwady Bank (AYA)
- Kanbawza Bank (KBZ)
- Co-operative Bank (CB)
The progress of JICA (ODA) SME two-step loan project (Phase-1)
In Phase-1, Myanma Economic Bank has allocated funds to (269) SMEs with the amount of MMK (57,634.43) million through the selected (6) PFIs such as KBZ, MAB, AYA, MCB, CB and SME-Development Bank. Myanma Economic Bank has also allocated funds amount of MMK (29,724.05) million for SMEs (140) from Revolving Fund Account which are repayment funds from PFI’s as at April, 2020 and the balance of Revolving Fund has been continued to provide SMEs loan through the selected (6) PFIs in Phase-1.
In Phase-2, the loan can be applied in the following banks;
- SME-Development Bank (SMEDB)
- Myanmar Apex Bank (MAB)
- Myanmar Citizen Bank (MCB)
- Ayeyarwady Bank (AYA)
- Kanbawza Bank (KBZ)
- Co-operative Bank (CB)
- UAB Bank (UAB)
- First Private Bank (FPB)
- Naypyitaw Development Bank (NDB)
- Myanma Economic Bank (MEB)
- Myanmar Oriental Bank (MOB)
The progress of JICA (ODA) SME two-step loan project (Phase-2)
In Phase-2, Myanma Economic Bank has already allocated fund with the amount of MMK (120,646) million for (715) SMEs as at April, 2020. Nowadays, MEB plans to finance the businesses adversely affected by the impact of COVID-19 from the loan of fourth batch from JICA and the remaining balance of phase-2 as TSL Emergency Loan. Therefore, MEB would like to announce that the affected MSMEs borrowers can apply for TSL Emergency Loan through the selected (11) PFIs.
