Myanma Tourism Bank (MTB) has announced that it will begin providing Union of Myanmar Travel Association members, who are primarily travel and tour companies, uncollateralised SMEs loans beginning this month. Loans will be released within two weeks to a month if the applicants have provided the necessary documents for their application.
While the loans are being initially offered to UMTA members, MTB will later on open them up to other tourism-sector businesses. The interest rate for the uncollateralised loans is set at 13 percent a year and applicants are also required to take up credit guarantee insurance (CGI) from Myanmar Insurance. The maximum amount for the loans is set at K20 million for applicants who show viable plan for the use of the funds.
According to Ministry of Hotels and Tourism statistics, there are roughly more than 2500 travel and tour companies in the country, but the majority are categorised as small and medium-sized enterprises. Meanwhile, UMTA has around 1000 members. MTB was one of five sector-specific banks granted a banking licence by the Central Bank of Myanmar (CBM) in 2017.
Source: Myanmar Times