COVID-19 Credit Assistance Program for SMEs

With the economic fallout from COVID-19 likely to have a significant impact on small and medium enterprises (SMEs) in Myanmar, KBZ Bank’s SME Banking is introducing SME COVID-19 Credit Assistance Program. This assistance program offers support to both existing and new customers who find themselves under increased financial strain due to the impact of COVID-19.

The service is available as of June 11, 2020.

To apply or know more about the program, please contact your Relationship Manager (RM) directly or call KBZ SME Banking Hotline 01377717, 01373778 or email to smart.smebanking@kbzbank.com. 

Types of COVID-19 Credit Assistance Program for SMEs:

  • Extension of current Overdraft and Term Loans, for up to 6 Months 
  • Deferral on Principal Loans and Interests, for up to 6 Months
  • Capitalized on Principal Loans and Interests, for up to 6 Months

Customer Eligibility 

  • Existing customers 
  • New customers 

Eligible Loan Types 

  • Term loan
  • Overdraft
  • JICA Two Steps Loan

Required  Documents

For business:

  • Business license form
  • Financial statements for the last 3 years
  • Receipts of revenue tax for the last 3 years
  • Photo of the business that reflect the process of the business
  • Business Expansion Plan for the loan

For companies:

  • Company Profile
  • Certificate of incorporation (From DICA)
  • Company Profile (From DICA)
  • Officer Details (From DICA)
  • Member Details (From DICA)
  • If an export/import business the company must possess export/import license with valid dates
  • The paid up capital amount from an updated audited balance sheet and the paid up capital from Form E must be the same amount
  • A written approval from board of directors
  • Update Audited Report

Collateral

  • Documents concerning the ownership of properties
  • Grant, map and history of property
  • Photos of the collateral
  • Other records (B.C.C, building design, etc.,)

Personal Documents

  • Copy of National ID
  • Household Registration
  • Letter of Recommendation clearly stating that you are living in shared quarters
  • Guarantee that you are single if you are single
  • Divorce papers and papers proving you aren’t marrying any time soon

Eligible Criteria: Existing customers

  • Minimum 2 years of receiving KBZ SME Loan Services 
  • An active SME loan and customers using KBZ Bank as the principal bank
  • No bad repayment history until Feb 2020
  • The existing loan must be utilized according to the purpose of financing, and the business must be directly or indirectly impacted by COVID-19

Eligible Criteria: New customers

  • Potential customers in high growth sector of the economy and government prioritized industries and sectors

FAQ 

For Overdraft and Normal Loans

Are there any fees related to this application?

There will be no additional fees except for the interest rate relating to this application.

Will there be late fees on the payment amount that is deferred by 6 months during the period?

There are no late fees on the payment amount that is deferred by 6 months.

Can a SME with an existing loan borrow additional funds from this program?

Yes, you can. You can contact your nearest bank or Relationship Manager for further discussion specific to your situation.

Do I need a special document for this program?

We can accept the standard document of Normal Overdraft and Term loan which can be found in the required documents session.

Do I need collateral to have access to this program?

As usual, a collateral is required to have access to this program.

Is there an option that differs only the principal payment, but repaying the interest?

We will consider. You can contact your nearest bank or Relationship Manager for further discussion specific to your situation.

For JICA Two Step Loan

Does Emergency Loan allow 100% working capital? Is this change also applied for normal SME-TSL (existing loan for capital investment)?

Current JICA Emergency TSL Loan allows 100% working capital. However, this relaxation is only for Emergency Loans. Working capital portion for normal SME-TSL (existing SME-TSL for capital investment) is 20%, no change.

I am an existing customer who borrowed MMK 500 Mil from SME-TSL in the past. Can the customer apply for an Emergency Loan?

Yes, even if the customer is already an SME-TSL end-borrower with maximum amount (MMK 500 Mil.), the customer can also apply for Emergency Loan with maximum amount (MMK 300 Mil.). However, the eligibility and repayment capacity should be checked by PFI through the credit appraisal.

Can SMEs who borrowed from KBZ’s own SME loan apply for an Emergency Loan? How about COVID-19 relief fund users?

No matter if the SME owner borrowed the bank’s own loan or COVID-19 relief fund, SME-TSL opens for any SMEs as long as the SME is eligible for the criteria checked by PFI.

Is this emergency loan a term loan or overdraft facility loan? Does KBZ Bank accept rollover for 1 year? 

Generally, our bank allows rollover working capital loan after one year depending on the conditions of the business.

This emergency loan is implemented as a term-loan. The loan can be set a loan maturity up to 5 years including grace period. Repayment schedule is allowed to be changed with specific documents.

How to set grace period for existing loans (normal SME-TSL for investment)?

There is no change of rule for the existing loans. The grace period rule is only for Emergency Loan.

Can a SME borrow emergency loans multiple times?

The emergency loan is limited to a single time only per person, and the maximum amount is MMK 300 Million.

Which type of businesses can apply for this program?

Every business except for the exclusion list mentioned by JICA.