iMyanmarHouse.com has introduced an installment loan programme in Myanmar for those who own land but lack the capital to build a house or a building for commercial purposes.
The company is aiming to grant loans to those who don’t have enough capital to construct luxury buildings, high-rise buildings, hotels, warehouses, and other buildings on land they own, said U Nay Min Thu, managing director of iMyanmarHouse.com.
Designed in collaboration with KBZ Bank and Myanmar Art Construction and Development Co Ltd, the loan is said to be the first of its kind in the country.
KBZ bank will issue loans to the applicants on the condition the building work is done by Myanmar Art Construction & Development. iMyanmarHouse.com will vet the documents for the loans and ensure the buildings are completed, said U Nay Min Thu.
He said that Myanmar Art Construction projects that it will be able to construct buildings within a year of the granting of a loan, with construction time stretching to two years for a high-rise building.
The maximum loan amount will be dependent on the value of the land U Nay Min Thu said.
“The maximum loan that can granted will be 70pc of the land value, and the maximum term will be 25 years. Those who wish to carry out conservation work on existing buildings can also apply for the loan,” said U Htay Aung, head of KBZ’s home loan department.
The programme will also grant three-year loans for the commercial buildings such as hotels, motels, restaurants, hostels, factories, and warehouses, depending on their business models, he said.
The interest rate for the loans is 13 percent a year.
Loans with longer repayment periods will be considered based on the value of the land and the financial standing of the applicant. Required documentation includes land ownership evidence, source of income, a copy of the household register, and bank statements for six months.
“If KBZ bank approves the loan and ownership documents have been deposited with the bank, then the loan can be used to start construction,” said U Kyaw Swa Hein, managing director from Myanmar Art Construction & Development.
Drawing designs for construction and prices will be negotiated between the applicants and the builder after the bank approves the loan. Once an agreement is made on the terms, these have to be resubmitted to the bank for approval, after which applications for construction will have to be carried out.
When construction starts, application for bilateral loan agreements between the lender and the construction company, permission for construction, loan records and income statements will have to be officially submitted to KBZ Bank. The entire procedure is expected to be completed in 14 days.
The loan will be issued not only to the businesses in Yangon Region, but also to any land owners across Myanmar, said U Nay Min Thu.
‘‘People living in rural areas just need to contact us if they want to get the loan. They don›t even have to come to Yangon. Our inspection team will conduct field study and explain the service to people. No service charges will be applied for this,” said U Nay Min Thu.
Land owners in Myanmar will have an opportunity to upgrade their homes or build new ones, he said. – MyanmarTimes