Mahar Bawga Finance (MBF), a Myanmar non-banking finance institution (NBFI), and Yoma Bank last Friday signed a semi-collateralised funding agreement under which Yoma will provide MBF with K2.2 billion in funds to support its operations.
The agreement, which aims to address growing borrower demand for unsecured loans for personal or business development, could see MFB adding up to 5000 new customers to its client base.
Since starting operations in 2014, MBF has more than 14,000 clients in Yangon and now has an aggregate loan book totaling K4.59 billion.
The semi-collaterised agreement supporting NBFIs is a first for Yoma Bank in its drive to bring the unbanked population of Myanmar into the formal financial system. The bank believes the agreement will not only be mutual beneficial for those involved, but also to consumers by improving the level of their borrowing behavior and financial literacy.
Source: Myanmar Times