As per recent World Bank growth projections for 2018 and 19, with 7.13% plus growth rate Myanmar stood the 7th place in Fastest Growing Economies in the World. After transferring its power from military to democratic country has opened its doors to economic development. The country has accelerated its growth from 5.9% in 2011 to 8.4% in 2017. Myanmar’s banking sector was considerably small & underdeveloped.
Improved regulations, healthy competition, and rapidly growing telecommunications are all converging to form Myanmar’s microfinance sector. New regulations from Central Bank, makes it easier to attend large communities with larger loan amounts requirements.
“Policies to sustain stable and inclusive growth are critical for creating more opportunities for people to earn and have better jobs in Myanmar,” said World Bank Country Manager for Myanmar Abdoulaye Seck. “They are also important for reducing the high inflation that impacts the poor the most adversely.”
As per current system, money lenders are charging 10% interest rate on monthly basis, which is on an average crossing more than 200% APR. With regulated financial institutions, small vendors can get better financial services with marginal interests of 20-30 % APR. On the other hand, healthy completion between microfinancing institutions and relaxed repayment schedules are encouraging individuals to use MFI rather than local money lenders.
Microfinance institutions must offer better services to vendors, as the economy and the financial sector are growing at a faster rate in the country. With increasing adaptability of technology such as smart phones and the internet across the country, institutions need to improve their offerings as per the need.
Top Microfinance Institutions in Myanmar
- Myanmar Microfinance Bank Limited
- Early Dawn Microfinance Ltd
- Pact Global Microfinance Fund
- VisionFund Myanmar
- ACLEDA MFI Myanmar Ltd