Central Bank permits loans without collateral at 16 percent interest rate

Central Bank permits loans without collateral at 16 percent interest rate

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Myanmar banks have been permitted to extend loans without the need for collateral at a maximum lending rate of 16 percent, the Central Bank of Myanmar (CBM) announced in a directive issued. The measures will take effect on the start of February.

Banks will be permitted to charge up to 16pc to loan money if borrowers pledge other forms of collateral or are not able to provide collateral.

Collaterals listed by the CBM are land and buildings, gold, diamonds and precious stones, savings certificates, government treasury bonds, fixed deposits, credit certifications and credit guarantees.

Source: Myanmar Times

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