Over K18 billion loans to be disbursed for farmers to purchase farm machinery this FY

Japan International Cooperation Agency (JICA) will disburse over K18 billion for farmers under JICA Two Step Loan Scheme to purchase agricultural machinery and over K967 million of loans have been paid out for 18 farmers in eight townships as of September in the current financial year 2022-2023.
Myanma Agricultural Development Bank (MADB) and JICA disburse K70 million per farmer. A total of K18 billion are granted for disbursement in the current FY.
This JICA Two Step Loan scheme is aimed at agricultural and rural development. The project contributes to a total of 5,500 farmers in 187 townships in 14 regions and states including Nay Pyi Taw between 2017 and 2022.
The farmers from Nay Pyi Taw, Yangon and Bago regions and Kachin State received loans. The repayment from the early batch covered those farmers from the following batch. This way, the continuous distribution of loan reaches a greater number of farmers, according to the JICA Two Step Loan project.
This scheme commenced in 2017, with an estimated project fund of K200 billion. The project term is 40 years until 2057. They can enjoy this long-term loan with a 40 year-repayment period with a 10-year grace period.
The farmers can expand the business with the help of a long-term loan from JICA. Each farmer is entitled to take out a K50 million loan at a cheaper interest rate to invest in the farm machinery and facilities such as workshops, mills and warehouses. They can repay that loan at an interest rate of 5 per cent in the three-year short term and five-year long term.—TWA/GNLM