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AYA Bank’s MSME Loans Provide Financing for Local Wholesale Grocers
Posted on October 20, 2023
On the 14th October 2023, today, AYA Bank PCL announced the signing of a Memorandum of Understanding (MoU) with Myanmar Agro Exchange Public Ltd. (MAEX) to offer MSME Loan to grocery stalls at Danyingone Market. This is a joint initiative to establish a framework of partnership between the bank and farmers’ market. AYA Bank seeks to promote cooperative and community ownership, advance equity, diversity, and inclusion, and provide capital access to underserved communities through MSME funding.
AYA Bank’s credit solution caters to the needs of Micro, Small and Medium-sized Enterprises. Our team of experts will guide them the process of securing this credit facility. Increasing its focus on MSMEs, the Bank will support loan fund up to three billion to help financing wholesale grocery stalls at Danyingone Local Market. Speaking on the occasion, U Myint Zaw, Chief Executive Officer of AYA Bank PCL said “The MoU is a positive sign that will help MSMEs to overcome financing challenges and unlock their potential to drive economic growth in the country.” “ The loan term will be between one to two years, and the interest rate will be as low as 10% per annum, to support viable MSMEs that lack collateral when applying for loans”, added by U Toe Lin Nyunt, Director and Head of SME Banking of AYA Bank PCL.
The new Danyingone Wholesale Market, being built in four phases, was developed by MAEX. It was launched in 2018 and presently, more than 6,000 stalls are operating. U Aung Gyi, Chief Executive Officer of MAEX explained that, “Sixty grocery stalls will be financed for the first step after calculating their eligible amount and the required working capital to expand their business. Loan verification process has also been conducted by the Bank to release funds.”
The collaboration will provide support to MSMEs, primarily in the grocery sector, by increasing their access to financing despite collateral challenges, and promote financial literacy. Recognizing that MSMEs, approximately 99 percent of business in Myanmar, are the main driving force for the state economy, AYA Bank PCL participates in this major initiative to accelerate the development of the MSME Sector.