SME Banking

KBZ Bank’s SME Banking is offering complete and comprehensive financial services and total solutions to encourage Myanmar SME business Entrepreneurs and to boost the economy in a timely and organized manner.


SME (Loan)

SME LOAN

SME Term Loan for Business Expansion or/and Capital Expenditure Financing

SME term loan can be applied for the purpose of Capital Investment for Business Expansion of the successful SME entrepreneurs. (Need to added)

Why KBZ’s SME Term Loan?

  • Acceleration of the business expansion with Capital Investment assistance.
  • Better Cash Flow Management due to the flexible loan repayment schedule based on business nature and cash flow cycle.
  • The negotiable repayment frequency and plan which benefit customer with the less burden of cash outflow while managing business growth

Which businesses are suitable to apply?

  • Businesses that need fixed asset acquisition
  • Infrastructures Development Companies Eg: Factories and Warehouses)
  • Machineries and industrial vehicles purchasing companies
  • Companies with service expansion plans
  • New business outlet opening and renovation

T&C for SME Term Loan

  • Loan Tenor – up to 3 years
  • Interest Rate – 10.0% (Secured)
  • Interest repayment- Monthly
  • Principal repayment- Proportionately – Monthly/ Quarterly/ Half-Yearly/ Yearly

SME Overdraft (OD) for Working Capital Financing

KBZ SME OD

SME Overdraft (OD) Facilities can be applied for the purpose of Working Capital (eg. Purchasing raw materials) requirement and short-term liquidity management.

Why KBZ SME Overdraft (OD)?

  • No commitment fees/hidden cost for unutilized funds. – Better Liquidity Management and effective cash management
  • Easy to build the positive track record with KBZ Bank as per cash flow via OD Account – Faster processing time for renewal

T&C for SME Overdraft

  • Loan Tenor – Up to 1 year
  • Interest Rate – 10.0% (Secured) (As per CBM’s instruction)
  • Interest repayment- Monthly
  • Principal repayment- Full repayment at the end of maturity

JICA Two Step Loan (TSL)

KBZ JICA Two Step Loan (TSL)

KBZ Bank is offering JICA Two Step Loans (TSL) to SME businesses in Myanmar with the fund provided by MEB, as government agent, from the ODA Loan program between Japan and Myanmar Governments.

Why SME JICA Two Step Loan?

  • Lower Interest Rate and longer loan tenor will enable your business expansion and growth
  • Encouraging Capital Investment to improve efficiency and productivity of the business
  • Improving project execution skills while preparing the reporting requirement
  • Faster business growth due to the less burden on repayment schedule with monthly interest repayment and annual partial principal repayment proportionately.

Who can apply?

SMEs are looking for financing to invest the Capital Expenditures (e.g. Building factories, warehouses, shops, purchasing machineries and industry vehicles) as per eligibility criteria (see below) set by PMU of JICA TSL Program

T&C for SME Overdraft

  • Loan Tenor – up to 5 years
  • Interest Rate – 5.5% (Secured), (As per PUM’s instruction)
  • Interest repayment- Monthly
  • Principal repayment- Annual installment proportionately
  • Loan Amount- Up to 500 Million

Not Eligible Sectors

The Following sectors shall be specifically excluded –
(1) Livestock breeders and farmers eligible for borrowing from Myanmar Agricultural Development Bank;
(2)Real estate;
(3)Finance and insurance;
(4)Precious metal dealing;
(5)Bars and pubs;
(6)Amusement, entertainment (except for tourism);
(7)Weapons,ammunition;or
(8)Any other sector harmful to the social stability (to be judged by Working Committee)

Note

  • Borrowers can use a maximum 20% for Working Capital purpose, but the rest 80% must be used for Capital Investment purposes.
  • Detail Business Expansion Plan of borrowing business needs to be submitted.

Our prioritised and focused sectors are

  • Manufacturing (Food Processing, Value-added Manufacturing, Garment and etc) – Industrial Production
  • Services
  • Trade
  • Healthcare Industry
  • Import substituent businesses

Business Information

  • Business license form
  • Company registration form
  • Receipts of revenue tax for the last 3 years (if applicable)
  • Financial statements for the last 3 years

Additional documents (If Your Business is running as a company under DICA)

  • 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
  • A written approval from board of directors
  • The paid up capital amount from an updated audited balance sheet and the paid up capital from Form E must be the same amount

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

Collateral

  • Title Deeds and Ownership Documents
  • Grant, map and history of property
  • Photos of the collateral

Under the Central Bank of Myanmar regulations, the following collateral are accepted

  • Immovable properties
  • Government bonds and securities
  • Machinery
  • Fixed deposits or Savings deposits
  • Goods
  • Gold
  • Company Shares

CGI Collateral

  • Documents concerning the ownership of properties
  • Grant, map and history of property

Q &  A

Although the business operation is long, the business has only one year of official business license. Can such a business still be eligible to apply for a loan?

Yes. But it is necessary to present a 3-year financial statement when the business operation term is long and its business license is only one-year term.The business with only 1 year formal business license can be applied for a loan if the business has been running for a decent amount of time. Still, the bank requires 3 years of financial statements to analyze.

The business has been running for 2 years, but the tax has been paid only for a year. (In some cases, not even a year.) Is such a business eligible to apply?

Yes. those businesses with two-year operations and one-year payable tax, can apply for a loan. For those businesses that have not paid tax yet, they can apply for a loan after paying withholding tax.

Is a Start Up company eligible to apply?

No, An SME with minimum 2 year experience is eligible to apply.

Can I still apply for a loan if I don’t have any collateral to provide?

Yes, you can still apply for a loan by using CGI (Credit Guarantee Insurance) of Myanma Insurance, instead of providing a collateral.

What requirements do I need to apply for the CGI?

According to Myanma Insurance, SME Smart Card and SME Recommendation Letter from DISI (Directorate of Industrial Supervision and Inspection) is required to apply for the CGI.

What kinds of business can apply for a SME loan?

All businesses can apply for a loan except the following business/person.
(1) Livestock breeders and farmers eligible for borrowing from Myanma Agricultural Development Bank;
(2)Real estate;
(3)Finance and insurance;
(4)Precious metal dealing;
(5)Bars and pubs;
(6)Amusement, entertainment (except for tourism);
(7)Weapons,ammunition;or
(8)Any other sector harmful to the social stability (to be judged by Working Committee)

How long does it take to receive a loan?

If you can provide complete documents, you will receive the loan within minimum two weeks and maximum one month.

Apply for a loan?

Get Application Form

  • KBZ All Branches
  • KBZ One Stop SME Banking Center
  • KBZ SME Banking Department

Contact Us

01377717, 01373778

smart.smebanking@kbzbank.com