The Myanma Agricultural Development Bank (Magway Branch) has lent more than Ks97 billion in loans to 221,540 farmers across the Magway Region to grow monsoon crops.
However, the farmers have to submit farmland form (7) as mortgage for receiving the loan, said an official from the Myanmar Agricultural Development Bank (Magway Branch).
“The bank distributed the loans to the farmers from 17 May 2018. Farmers have to return the seasonal agricultural loans by 15 April 2019. The bank provided Ks150,000 per acre of rice plantation and Ks50,000 per acre of other crops, including beans, pulses and cotton. The bank granted a total of Ks58.74465 billion in loans for 391,631 acres of farmland and Ks38.420 billion for 768,402 acres of other crops. But the bank takes farmland form (7) as mortgage from the farmer, said U Win Zaw, region manager of Myanma Agricultural Development Bank.
Last year, farmers could obtain agricultural loans from the bank by showing their household and bank accounts. But this year, they have to submit farmland form (7) as mortgage. Therefore, some farmers area demanding more loans.
“The current price of agricultural land is Ks3 million per acre. But the loan provided is only Ks50,000 per acre. Therefore, some farmers do not take loans from the government. They borrow money from other sources to get more loan amount,” said U Kyin Shwe, a local farmer from Kan Pyar Village.
According to the bank data, some local farmers from Minbu, Pwintbyu, Salin, Myo Thit, Thayet and Aunglan townships are yet to return agricultural loans taken last year.
The farmers were disbursed loans at an interest rate of Ks8. However, farmers who failed to return the loan within the set time frame to the bank have to pay one kyat per month as fine.
Agricultural banks are required to disburse loans depending on the type of crops. In some cases, applicants were found to seek loans fraudulently for crops not included in the eligible list.
Zayya Tu (Magway)