Yoma Bank and Lotte MGS to Collaborate for MSME Loan Program
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Yoma Bank and Lotte MGS partner to support the growth and development of MSME
businesses in Myanmar
Yangon, Myanmar – November 15, 2019 – Yoma Bank and Lotte-MGS have entered a financing partnership to support the growth of micro, small and medium-sized businesses in Myanmar. Through the partnership, Yoma Bank will extend unsecured financing to Lotte’s exclusive dealers and retail merchants by providing loans.
Seung Yong Lee, Sales Director of Lotte-MGS said, “Traditionally, banks required collateral, extensive documentation, and their approval process took months. These barriers made it impossible for small businesses to obtain credit and made it very difficult for smaller merchants to efficiently use their working capital. We think our distributors and merchants will be very excited about this new offering.”
Jason Loughnane, Yoma Bank’s Head of Digital Credit, said, “This partnership will provide much needed working capital financing for micro and small businesses nearly instantly and at very low cost to the borrower. With this new partnership, Lotte-MGS’s dealers and merchants can get cash-in-hand more quickly than ever before, and they can now borrow against expected future sales to help grow their businesses. We look forward to working together with more like-minded companies to reach other underserved business segments in the near future.”
Through this program, the loan amount is determined based on the applicant’s transaction volume with partners of Yoma Bank. Yoma Bank charges an interest rate of 16% on all unsecured loans, in compliance with Central Bank of Myanmar regulations.
Lotte-MGS Beverage (Myanmar) Company Limited is a member company of Korea’s LOTTE Group. Lotte-MGS is the exclusive bottler and distributor of Pepsi products in Myanmar. The Joint Venture between Korea’s Lotte Chilsung Beverage Company and Myanmar Golden Star Beverage Company began in 2014. The relationship between Lotte and PepsiCo dates back over three decades to 1976 in Korea. Lotte Chilsung Beverage Co, the leading beverage manufacturer in Korea, also operates beverage businesses in China and the Philippines.