28 Jan 2019
MYANMAR: Local Banks Cleared to Offer Unsecured Loans and Three-Year Mortgages
As of 1 February this year, local banks in Myanmar will be permitted to extend credit to all businesses without the need for it to be guaranteed against existing assets (including land and property). While financial institutions may charge a higher rate of interest rate on these unsecured loans than the national standard (13%), the applicable rate must not exceed 16% per annum.
In a bid to boost the country’s residential property market, local banks have also been given approval to allocate up to 5% of their loan portfolio towards mortgages with a duration of three years or less. All mortgages that extend above a 36-month period, however, must be approved by the Central Bank of Myanmar.