MADB cuts interest rates on agro loans amid Covid-19

LOCAL NEWS

Myanmar Agriculture Development Bank (MADB) has reduced its interest rates on agricultural loans, a bank announcement stated.
MADB announced the reduction of interest rates included the agricultural loans, the JICA loans and the loans provided for the agricultural sector by Myanma Economic Bank (MEB) to the local farmers so that the agricultural loans can be obtained at lower interest rates.
The interest rate for the agricultural loans provided by MADB is reduced to 7 from 8 per cent. Similarly, the interest rate for JICA’s agricultural and rural development loans are lowered to 6.5 from 8 per cent. And the project interest rate for MEB is decreased to 8 from 9 per cent.
MADB has also changed the interest rate for the saving accounts of the farmers. The rate will be 6.5 from 8 per cent.
The changes in the interest rates for both loans and saving accounts will be effective from April 2020, the MADB’s announcement stated.
Since 2017, the agricultural and rural development loans have been provided by JICA in cooperation with MADB. The government has approved that a maximum amount of K50 million was lent to each local farmer. They have already advanced over K80 billion to more than 2,000 local farmers from 155 townships as of March 2019.
The loans for the agriculture and livestock businesses provided by MEB in partnership with MADB were started in April 2018. They have already provided more than K6 billion to more than 600 businesspersons from 100 townships as of April 2019. —Aye Cho (Translated by Hay Mar)

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