Myanmar Tourism Bank announced that members of Union of Myanmar Travel Association will be able to get uncollateralized SMEs loans starting from this month.
“We will release the loans within two week to a month if the applicants have provided the necessary documents for their application,” said MTB Deputy Managing Director Andrew Khant.
The interest rate for uncollateralized SMEs loans is 13 percent and members require to buy credit guarantee insurance (CGI) from Myanmar Insurance. The maximum amount for the loans is set at K20 million for applicants who show viable plan for the use of the funds.
“As a businessman, I think the rate for the loan is too high. But we face difficulties in getting loans with other bank so we welcome MTB’s efforts. Most small tour companies need some sort of financing,” said U Than Naing, the owner of a tourism business.
MTB will later open uncollateralized loans to other tourism-sector businesses.
MTB Chair U Yan Win said, “As a tourism-related bank, we will focus on lending to this sector. But we also plan to offer financial support to other related sectors and businesses to add further support for the tourism industry.”
Source: The Myanmar Times
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