Villagers cannot apply for bank loan due to incomplete ownership documents

October 23, 2023

HURFOM: Citizens have the right to apply for a loan from particular banks but the rural population in Mon State has lost that right due to incomplete ownership documents, reported locals to HURFOM.

“If you owned a car or a house or a plantation and you had a complete/official ownership document. You can apply for a loan from the bank. But in rural areas, most villagers don’t have complete documents so they can’t apply for a loan,” said an agent from KBZ bank in Mawlamyine.

The loan applicant must have their name in the official ownership document to get a loan from the bank. If so, the bank will give a loan equivalent to 50% of the value of the property.

However, most properties in rural areas have been sold and bought in accordance with traditional practices and residents do not have ownership documents that are recognized /approved by the government.

Applying for an official ownership document from the government department is also time-consuming.

“If we get a loan during this tough time, it’s a huge relief. But our properties don’t have ownership documents (approved by the government). Our house and plantation have no official documents. So banks don’t give out loans. The situation between rural and urban communities is different,” said a local man from Thanbyuzayat Township.

Burma is in a financial and economic crisis so both business persons and ordinary citizens are in need of loans. However, incomplete ownership documents or ownership not approved by the government has become a barrier for rural residents seeking bank loans.

Written by HURFOM · Filed Under News