Home Loan

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Home Loan

For Customers with Good Payment Performance

Interest will be charged at 13 percent for the first year and will drop by 0.5% for each following consecutive year to as low as 11 percent if the customer shows good payment performance. The minimum loan value is set at MMK 15 million and all customers can apply for this loan.

Based on Loan to Value Ratios

Loan to Value Ratio (LTV) refers to the loan amount compared to the value of the property. If the LTV (based on assessor’s recommended value) ratio is less than or equal to 60 percent, the bank will charge interest at 12 percent. If the customer shows good payment performance, interest will be charged at 11 percent after three years. If the LTV ratio is less than or equal to 50 percent, the bank will charge interest at 11 percent. The minimum loan value is set at MMK 50 million and and all customers can apply for this loan.

Based on Monthly Income

This loan option is offered based on the comparison of the monthly loan repayment amount and the monthly nett salary of the customer. If the loan repayment amount is less than or equal to 30 percent of the monthly nett salary, the bank will charge interest at 12 percent. If the customer shows good payment performance, interest will be charged at 11 percent after three years. If the loan repayment amount is less than or equal to 20 percent of the monthly nett salary, the bank will charge interest at 11 percent.

The minimum loan value is set at MMK 30 million and both employees with any bank payroll slip or tax slip and self-employed persons with a stable regular income can apply for this loan. Self-employed persons will need to make a one-month prepaid installment.

Based on Pre-Paid Instalments

This loan option allows customers to enjoy a lower interest rate of 12 percent if they can submit two months of prepaid instalments. If the customer shows good payment performance, interest will be charged at 11 percent after three years.

First Home Loan for Newly-Married Couples

For couples who are newly-married and who have a regular income, they are eligible to apply for this loan with interest rate of 12 percent for the first three years. If the couple shows good payment performance, interest will be charged at 11 percent after three years. The minimum loan value is set at MMK 20 million.

For all the loan options, the interest rate will be changed back to 13 percent should the customer default on monthly payments at any stage. For customers who default on monthly payments, they are still eligible to apply for promotional interest rates after paying 13 percent interest for one year.


Property Types

  • Apartment and Condo
  • Landed Properties
  • Home Construction Loan

  If you are employed:

  • Employment verification letter (career,
    salary, number of years with company)
  • Salary verification letter (tax slip copy)
  • Bank Statements (6 months most recent)
  • Rental contract (if you have one)

  For all applicants:

  • NRC no.
  • Passport details (if you have one)
  • Photo (passport size)
  • Family registration record
  • Verification of address

If you are self-employed:

  • Business License
  • Financial Statements (last 3 years needed)
  • Cash Flow Statement (6 months)
  • Tax Pay Slip Copy

Services

  • Property Value: Kyat 200 Lakh and Above
  • Tenor: 3 Years up to 25 Years

If you are a Company applying for the loan:

  • Certificate of Incorporation
  • Form VI, XXVI and E
  • BOD Meeting Minutes
  • Financial Statements (3 years)
  • Cash Flow Statements (6 months)
  • Tax Pay Slip Copy
  • Memorandum of Association and Article of Association

Applicants

  • Age  must  be  between 18- 65 years (Employees, SME s and  Company Owners)
  • Health   must  be  good
  • Source  of  Income  must  be Regular, Sound  and Cover
  • Must  have the ability to  contract

Fees & Charges applicable for Home Loan

  1. Fire Insurance (Yearly)
  2. Stamp Duty (0.5% on Home Loan Amount)
  3. Service charges will be charged 1.5% on Loan Amount and started from 1.3.2019 (including Assessor Fees, Lawyer Fees and GP/SP charges)

Terms & Conditions:

  • Credit limit is maximum 70% of  Property Value
  • Interest rate is 13% (per year)
  • Interest calculation will be daily basic 
  •   Interest calculation method will be Amortize Reducing(EMI Method)
  • Service Charge is 1.5% and will be calculated on  Loan Amount
  • Service Charges will be collected from the customer
  • Principal and interest will be deducted from Customer Settlement  Account by monthly
  • Settlement Account will be Current Account
  • Tenor is 3 years to 25 years
  • Start date will be mortgage term loans sanction date .(example – Start Date: 15 Oct2017 and End Date: 15 Oct2018 for one year
  • Grace period is 5 days
  • Late Fees 13% will be charged on overdue of principal and interest amount after grace period
  • Daily accrued will be calculated for late fees
  • Partial prepayment and full prepayment will be allowed after one year
  • 100% balance of principal prepayment allowed (after 3 years ) without any penalty
  • 3% will be charged for any prepayment from 1 to 3 years
  • Able to choose any developer for Home Loan
  • Able to apply with one or more co-applicant.

Q & A

How Long will the whole process take?

It will take approximately 14 working days to process.

How much money do I need to make to qualify?

We have provided a calculator in our website. This allows you to work out the maximum credit limit that you can apply for, your monthly repayment, total interest that you have to pay based on your credit limit and the credit terms that you can apply for (based on your age and income).

Where can I get the product information?

Our KBZ web page and selected KBZ Branches with their corresponding phone numbers.

Can we use a combined salary to apply?

Yes you certainly can.

How long will it take to pay my loan back?

It will depend on your down payment and your monthly income. We will provide the loan from 3 to 15 years based on property value.

Do I need collateral?

The property itself is collateral. No further collateral will be needed.

What’s the frequency of the payments and at what interest rate?

Monthly repayment method will be applied. The interest rate is to be confirmed by CBM.

Want to open this account?

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(+95) 9-444000700

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