Hire Purchase Loan

  • Product Features
Features Proposed
Product Name
  • Hire Purchase (HP)
Basic Criteria 
  • Any Myanmar Citizen who have stable income with Age 20 to 60 
  • Minimum (6) months experienced in existing employment/ business 
  • Recommendation Letter from HR with official company’s letter head (Individual/ Salary Employed)
Eligible Customer
  • Any business/ company which are officially running as per government regulation
  • Any company staff or government staff whoever has stable monthly salary 
Eligible Item Price
  • Min: 0.1 million
  • Max: 10 million
Maximum Financing Quantum
  • Up to 90% of Total Price of the item
Applicable Loan Amount
Business Individual
  • Min: 0.1 million
  • Max: 10 million
  • Min: 0.1 million
  • Max: 0.5 million

.
Loan Tenor
  • Business: 6, 9, 12, 18, 24 months 
  • Salary Employed: 6, 9, 12 months 
Guarantee
  • Two Compulsory guarantors who have stable monthly income (One must be relative, and other can be anyone for as long as he/she has stable income.)
Interest 
  • 28% p.a. (Bases on any changes made by FRD or related department)
Interest Calculation Method
  • Declining 
  • Simple (as per case – please see for “Repayment Frequency” for detail) 
Loan Processing Fee
Business Individual
  • 6m – 1%
  • 9m – 1.5%
  • 12m – 2%
  • 18m – 3%
  • 24m – 4%
  • 6m – 0.5%
  • 9m – 1%
  • 12m – 1.5%

.
Social Welfare Fund
  • Business : Nil
  • Individual : 0.5% on loan amount
Compulsory Saving
  • First Time – 5% on loan amount
  • Second & Onwards – 1% on loan amount
Minimum Prepayment on Principal
  • 10% of Principal
Prepayment Fee
  • 2% on total prepaid Principal 
Debt Service Coverage Ratio/ Debt Service Ratio
  • Business: DSCR – Min 1.5 
  • Individual: DSR – Max 30%
Disbursement 
  • Directly to Authorized Dealer’s Account
Repayment Frequency

Business: Each Monthiversary Date of Loan Disbursement

Individual: Please see below Table:

Disbursement on 

End of Month

Disbursement on 

any day else
  • Each Monthiversary Date of Loan Disbursement
  • First Month – Interest only with daily basis
  • Second & Onwards – Principal + Interest on each end of month
Repayment Channel 
  • A/C transfer
  • OTC payment at Branch
Available Location
  • Any OKM MFI branch
Loan Approval Expiration
  • (1) week from loan approval has been officially informed to client by LO.
  • Required Documents for Loan Application
Business (Self Employed) Individual (Salary Employed)
  • Personal related documents 
  • NRC (Copy)
  • Household List (Copy)
  • (1) Passport Size Photo
  • Testimonial Letter from Ward Administration Office 
  • Testimonial Letter from Police Recommendation Letter (*Above 5 mil)
  • Personal related documents 
  • NRC (Copy)
  • Household List (Copy)
  • Passport Size Photo
  • Testimonial Letter from Ward Administration Office 
  • Business Related Document
  • Valid Business/ company license/ related license from respective government office such as SME license, shop license from YCDC (*Above 5 mil)
  • Certificate of Incorporation (if any) (i.e. Company License, Form 6, Form 26) (*Above 5 mil)
  • Financial Statements or any financial records 
  • Employment Related Document
  1. Testimonial Letter from HR (Employment Confirmation Letter with current Salary Amount)
  • Ownership Related Document (*Above 5 mil)
  • Ownership documents of Business located property/ House
 Not Applicable 
  • Guarantor Related Document (Both Business HP and Individual HP)
  • NRC (Copy)
  • Household List (Copy)
  • Proof of stable income, e.g. employment contract and/or financial statement and/or Staff Card and/or Pay slip and/or Bank statement
  • Purchase Item Related Document
  • Original receipt prepared by Authorized Dealer (Item description and Original price to be stated clearly)