What is JICA SME Two Step Loan?

  • JICA SME Two-Step Loan is the type of loan using funds organized by collaboration of Japan and Myanmar through Myanma Economic Bank to support small and medium businesses with the aim to promote development of SME sector in Myanmar.

Types of Collateral

  • Immovable Properties (Land and buildings)
  • Bank Deposits (Fixed Deposits, Saving Deposits)
  • Gold and Jewelries

Advantages

  • Tenure of the loan is from minimum 3 years to maximum 5 years.
  • Maximum amount of K 500 million will be disbursed to buy buildings, machineries, warehouses, etc. and to make other capital investments.
  • Interest must be repaid on quarterly basis.
  • Principle must be repaid in accordance with the sub-loan agreement between the applicant and the bank.

Interest and Repayment Plan

(1) Interest 5.5% per annum
(2) Interest Payment Must be repaid on quarterly basis.
(3) Interest Payment Principle must be repaid in accordance with the sub-loan agreement between the applicant and the bank.

Requirements

  • A copy of NRC Card and Household Registration Card with a passport photo of the applicant
  • Business Plan
  • Repayment Plan
  • Valid Business License and other related licenses (SME Member Card and Recommendation from the Ministry of Industry)
  • Financial Statements (Balance Sheet, Profit & Loss A/c, Cash Flow Statement) for the nearest 3 years
  • Copy of Company Registration and full documents issued by DICA (Original and Copy) and Original Copy of BOD Resolution
  • Brief history of business and photos of business.
  • Receipts of Income tax (at least 3 years)
  • A copy of NRC Card and Household Registration Card with 2 passport photos of the person in charge of the business
  • Detail investment plan and data of the business.
  • The detail list of the of the machineries and equipment going to buy, their prices and detailed plan of how to use them.
  • Recommendation for not effecting environment and society.

Application Procedure

  • In order to apply JICA SME Two-Step Loan, please visit nearest First Private Bank Branch and discussed with the branch manager for required documents, etc. and fill Application Form and submitted it to the bank.
  • Responsible personnel will scrutinize the applied information and inspection will be made for Title clearance and assess the market value and forced-sale value of the properties.
  • First Private Bank will apply to Myanma Economic Bank for the JICA SME loan provided that all documents are adequate and complete and in line with the rules and regulations.
  • Loan contract and related documents will be signed at the bank once getting loan approval from Myanma Economic Bank.