The Indian logistic and warehousing group, Sohan Lal Commodity Management (SLCM) today signed a memorandum of understanding (MoU) with Myanma Apex Bank for collateral financing in Myanmar. The step is aimed at strengthening the network for providing collateral management solutions to processors, traders, exporters, farmers and importers across Myanmar.
The MoU was signed by Anubhav Sengar, Country Head, SLCM and Kyaw Soe Min, Deputy Managing Director, Myanma Apex Bank. The signing commitment states that rate of interest for loan disbursement remains fixed at 13 percent.
SLCM has made considerable footprints in Myanmar to provide warehouse management and collateral management services through its wholly owned subsidiary.
With this, SLCM becomes the only warehousing and collateral management services provider in Myanmar and has tie-ups with four leading nationalised banks including Yoma Bank, CB Bank, United Amara Bank and now with Myanma Apex Bank.
On this development, Sandeep Sabharwal, SLCM Group CEO, said, “The Group intends to play a significant role in boosting the economy of Myanmar by reducing post harvest losses through its indigenously developed process AGRI REACH and by advocating best collateral management practices which allows financial institutions to aid the SME sector. There was a strong need of a system oriented logistics support provider and SLCM was the best placed to address this gap. We have pioneered in introducing Collateral Financing and Professional Warehouse Management with best-in-class international standards in Myanmar. We will continue to expand with this pace.”
Myanma Apex Bank will offer financial solutions to both individual and corporate customers, in accordance to their needs. Commodities financed will be stored at SLCM managed warehouses. The Indian partner would undertake sampling, testing, grading, assaying, fumigation, aeration and quality certification of the commodities to ensure the quantity and quality of the pledged commodities.