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.
- 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)
- 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
- 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
- Fire Insurance (Yearly) (0.02% on Property Value)
- Stamp Duty (0.5% on Home Loan Amount)
- Service charges will be charged 1.5% on Loan Amount and started from 1.3.2019 (including Assessor Fees, Lawyer Fees and GP 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.
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