MYANMAR Agricultural Development Bank, the largest financial institution serving the agriculture and rural sector of Myanmar, granted over Ks9.5 billion in loans to farmers across Mandalay Region to grow winter crops.
The bank disbursed a certain amount of agriculture loans to the local growers starting last month, said U Win Myint, manager of the MADB (Mandalay branch), adding that the loans for this season firstly go to Singaing Township.
The head office provided the funds after approving the estimated budgets submitted by the branches. The bank continued its loan programme for farmers to successfully cultivate seasonal crops.
The bank plans to issue a total of Ks9.5056 billion to 15 townships in the region. The majority of loans will go to Madaya Township, followed by Singaing and Singu Township. Mandalay City will accept Ks9 million, the smallest funding under the new loan programme.
According to the new plan, Madaya Township will receive Ks2.38 billion loans, Singaing Township will receive Ks1.8375 billion and Singu Township Ks1.4587 billion.
The bank has disbursed seasonal agricultural loans under both long-term and short-term plans. This season, the bank granted Ks150,000 loans per acre of rice with an 8 per cent interest rate and Ks20,000 per acre for other crops such as pulses, cotton, maize and jute. Those growers wishing to apply for a loan need a recommendation from the Scrutiny Committee. Action will be taken against those who fail to abide by the existing laws and regulations relating to loans.
U Myint Zaw, one of local growers, said farmers frequently face financing problems because of the bank’s policy that allows loans to cover the first 10 acres of farmland owned by any one farmer.
He added that growers have found it difficult to pay back the loan if crops are destroyed by natural disasters.
Aung Thant Khaing