Individual Loan
Purpose – This loan is designed to support small and medium-sized business owners in Myanmar by providing the working capital needed to expand their businesses and improve profitability. Through this financing, NongHyup Finance Myanmar aims to contribute to the growth and development of Myanmar’s economy.
Loan Eligibility Requirements
1. The applicant, or a member of the applicant’s household listed in the Household Registration List, must own a house. The original ownership documents (such as a Grant, Sale and Purchase Agreement, or Land Tax Receipt) must be presented to the Loan Officer for verification, and copies of the supporting documents must be submitted.
2. Applicants must provide guarantor(s) as follows:
Loans exceeding MMK 3,000,000: Two guarantors are required.
Loans of MMK 3,000,000 or below: One guarantor is required.
The guarantor must be an independent third party or acquaintance who is engaged in a business of a similar nature to that of the applicant.
3. If the applicant has an existing Individual Loan with another financial institution, the outstanding loan balance will be deducted from the maximum loan amount for which the applicant is eligible under our lending policy. However, the total approved loan amount shall not exceed MMK 4,000,000.
4. To verify home ownership, both the applicant and the guarantor must obtain a Recommendation Letter from the relevant Ward or Village Administrator confirming both home ownership and actual residence.
5. Existing members must have a good repayment and attendance record within their lending group. New applicants must be permanent residents of their ward or village and be of good character and integrity.
6. The applicant must be operating a lawful business in compliance with applicable laws and must have been engaged in an income-generating business for at least one year.
7. The applicant must have invested at least 50% of the loan amount from their own funds in the business.
8. Applicants engaged in businesses without regular monthly income, such as agriculture or livestock farming, are not eligible. The applicant must operate a business that generates a stable monthly income.
Loan Repayment Schedule, Number of Installments, and Applicable Charges
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Repayment Term
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Number of Installments
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Service & Documentation Fee (%)
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Social Welfare Fund Contribution (%)
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Compulsory Savings
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|---|---|---|---|---|
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28 Days
|
10 installments
|
2.0 %
|
0.5 %
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4.0% of the loan amount (to be deposited from the date of loan disbursement)
|
|
12 installments
|
2.5 %
|
0.5 %
|
||
|
18 installments
|
3.5 %
|
1.0 %
|
||
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24 installments
|
5.0 %
|
1.0 %
|
Loan Eligibility Requirements
1. The applicant’s head of household must provide consent regarding the loan by signing an acknowledgement form. If the applicant is the head of household, the applicant must meet with a responsible family member who can take responsibility and obtain their signed acknowledgement.
2. Priority will be given to businesses that have valid official licenses. The applicant must be able to provide the original license or a copy of the license.
3. The business must operate legally and comply with applicable laws. The business must be a type of business that can generate income within four weeks (one month) after loan disbursement.
4. The applicant must agree to allow NongHyup Finance Myanmar to conduct business operation inspections once every three months.
5. The loan interest rate shall not exceed 28% per annum.
6. The loan must be repaid through regular monthly installments with equal portions of principal and interest.