MRF farmers get access to 3-year loan plan from MAB

Myanmar Rice Federation’s (MRF) member farmers can get three-year loans from the Myanmar Apex Bank (MAB), by putting up land registration document Form-7 as a collateral, said U Ye Min Aung, secretary of MRF.

MRF is promoting access to finance and financial inclusion for its members, in collaboration with MAB, he maintained.

MAB provides Ks400,000 per acre under the three-yearterm loan programme and it demands repayment in five installments during harvest time at an annual interest rate of 13 per cent.

This loan plan can benefit farmers in their agribusiness activities, such as farmland treatment, improving irrigation water, livestock breeding and growing crops, he continued.

MAB’s chief business officer U Kyaw Ni Khin said that MAB is introducing farmer loans on a trial basis and will try to promote its service based on MAB’s collaboration with its development partners, respective state and region governments and related departments.

MAB provides loans to MRF’s farmers in Danubyu and other townships in the Ayeyawady, Bago and Yangon regions. Some farmers in Danubyu Township have built roads on their own on a small scale with the use of loans, in order to ensure smooth transportation in the rural areas.

The state-owned Myanmar Agriculture Development Bank also provides seasonal and agricultural loans to farmers. However, loan plans of private commercial banks are limited in scope and difficult for farmers to access. Now, MAB has introduced its three-year-term loan plan to help support farmers in increasing productivity, profitability and prosperity.

By May Thet Hnin

Ref; The Global New Light of Myanmar