Lending Policies

The bank has land down “Lending Policies” “Customer Acceptance Policies” and disbursed loan to those acceptable customers who actually need fund for business expansion, capital investment etc.

Business Types (Acceptable)

1. Consumer Goods and Raw Material productions.
2. Finished Goods Products.
3. Construction and Engineering Industry.
4. Transportation Industry.
5. Distribution, Manufacturing and Trading including (Export and Import)
6. Services

Types of Lending

Loan System

Loan customer must open a current account as well as Demand Loan Account through which loan amount (in Multiple of Thousand) transferred to current account as required within the “Loan Limit” sanctioned by the bank.

Overdraft System

Need to open a current account under special arrangement with the bank and the bank will put a “Overdraft Limit” on the current account through which the customer can draw cash amount as he wishes up top Overdraft Limit.

• Accounts to be opened at Bank

Customers can open any types of account according the Bank Regulations such as Individual, Joint Account, Company Account, Clubs and Associations Account etc. through which customers can apply for Loan or Over Draft.

Methods of Lending

Bank Loans can be disbursed to “individual”, “Joint Personal”, “Company” and “Joint Venture”, all these (would-be loan customers) must have been doing the business well. They may apply for loan with the following documents according to the types of customer.

Individual and Joint Personal

• Business license or Permit obtained from relevant government department or authority
• Immovable property (Real Estate), land and building, gold and jewelry as collateral
• Statement of Profit and Loss account
• Inland Revenue Department’s Tax Challan (paid by customer through MEB bank)
• Interest rate 12% per annum

Company or Joint Venture

• Copy of Company Registration (Certificate) or license or permit obtained from relevant government department (or) authority
• Memorandum of Association
• Articles of Association
• Resolution of Board of Directors
• FORM – E (LIST OF SHARE HOLDERS)
• FORM – VI (RETURN OF ALLOTMENTS)
• FORM – XXVI (PARTICULARS OF DIRECTORS, MANAGER AND MANAGING AGENTS)
• Inland Revenue Department’s Tax Challan (paid by customer through MEB bank)
• Statement of Profit and Loss account
• Interest rate 12% per annum
• Loan interest repayment term-Quarterly Rest

Special Types of Lending

• Account Pledge Lending
• Gold Pledge Lending
• Hire Purchase Lending
• Auto Finance Lending
• SME Loans

Account Pledge Lending

Customers of MAB who own Savings and Fixed Deposit accounts at the bank can apply for loans at the bank when they are in need of urgent cash.

Gold Pledge Lending

The bank offer gold-secured loans where borrowers offer gold as collateral.

Hire Purchase Lending

When customers cannot make downright payments for items that they wish to buy, they can use the bank’s hire purchase loan. They pay for a proportion of the price and the bank pays for the rest of the amount. The customer repays the bank through installments which span for periods of up to three years.

Auto Finance Lending

SME Loans

As a local provider of banking services in the Myanmar, MAB Bank aims to become the preferred banking-partner of local Small and Medium Enterprises.

The SMEs lending activities complement the existing range of loan products and enable the bank to offer existing customers with growing financing needs a long-term client relationship.

The SME lending business aims to offer financial services to eligible SMEs businesses that previously were not able to receive sufficient financing from other financial institutions.

MAB Bank currently offers three different types of SMEs Loan

1. JICA Two Step Loan
2. SME-KfW Loan
3. SME-MAB Loan

JICA Two Steps Loan

Loan purpose:

Working capital 20%

• Purchase of material
• Other business-related current expenditures

80% Fixed investment

• Purchase of equipment or/and machines
• Construction projects
• Renovation projects

Loan amount

Max. MMK 500 Mio

Maturity

Max: 5 Years

Repayment

Quarterly/Bi annual repayment

Interest rate

8.5% p.a

SME-KfW Loan Product

Loan purpose:

Max. 25% Working capital (including but not limited to)

• Purchase of goods or material
• Other business-related current expenditures

Min. 75% Fixed investment (include but not limited to)

• Purchase of equipment or/and machines
• Construction projects
• Renovation projects

The loan cannot be disbursed into security market, future market or equity investment.

Loan amount

Max. MMK 100 Million

Maturity

For working capital
12 months to 36 months

For fixed asset
12 months to 60 months

Repayment

Monthly equal repayment (principal and interest)

Interest rate

8.5% p.a

SME-MAB Loan Product

Loan purpose:

Working capital (including but not limited to)

• Purchase of goods or material
• Other business-related current expenditures

Fixed investment (include but not limited to)

• Purchase of equipment or/and machines
• Construction projects
• Renovation projects

The loan cannot be disbursed into security market, future market or equity investment.

Loan amount

Max. MMK 500 Million

Maturity

For working capital
12 months to 36 months

For fixed asset
12 months to 36 months

Repayment

Monthly equal repayment (principal and interest)

Interest rate

13% p.a

Required Documents

• NRC
• Household Certificate
• Business License or Company Registration
• Audited Financial Statements of Last Three Years (If it can be provided)
• Business Photo
• Tax Receipts
• Collateral Documentations
  (Other Documentations May Be Requested as Needed)