Local oil millers who need financial resources will be provided with loans for oil mill development at a low interest rate. To apply for an oil mill development loan, the oil mill must be currently operating and have a valid registered business license. As collateral for the loan, the owner must provide immovable property and agricultural land ownership certificate Form 7 registered to him.
Oil mills that have already taken loans from banks will only be granted loans if they can provide separate collateral. The minimum loan amount for working capital is Ks.100 million and the maximum is Ks.500 million, and the minimum loan amount for fixed capital is Ks.200 million and the maximum is Ks.500 million. Entrepreneurs who want to borrow more than Ks.500 million should apply directly to the Myanmar Agricultural Development Bank head office. The loan repayment period is 1 year for working capital, 3 years for fixed capital, with 3 installments, and the annual interest rate is 5 percent.
Oil mill entrepreneurs who want to apply for a loan must obtain a loan proposal form and apply at the Oil Mill Owners Association Offices in Nay Pyi Taw, the relevant region and state, the Myanmar Edible Oil Dealers’ Association office, all branches of the Department of Industrial Supervision and Inspection, all branches of the Myanmar Economic Bank, and all branches of the Myanmar Agricultural Development Bank.
Under the guidance of the State Administration Council, the Oil Mills Development Credit Management Group is providing low-interest loans from the Oil Mill Loan Fund established by the National Economic Development Fund to expand and install modern equipment in domestic oil mills, build new modern oil mills, and meet investment and operating needs.
