More than Ks 37 billion in monsoon paddy cultivation loans will be disbursed this year in Mon State, according to the Myanmar Agricultural Development Bank in Mon State.

Daw Moe Moe Lwin, Manager of the Mon State branch of the Myanmar Agricultural Development Bank, said that banks across the state’s 10 districts and townships are planning to provide loans totaling Ks 37.087 billion for 123,626 acres of monsoon paddy farmland cultivated by around 16,448 farmers from 327 village tracts.

She added, “The monsoon paddy cultivation loans started being disbursed on May 12. As of May 20, the 10 district and township bank branches had already provided Ks 6.6168 billion in loans for 22,056 acres of farmland cultivated by 3,200 farmers from 128 village tracts. Loan disbursement will continue from May 12 until the end of September.”

Starting this year, the loan amount for monsoon paddy cultivation has been increased to Ks 300,000 per acre, with farmers eligible to borrow up to Ks 3 million for a maximum of 10 acres. In previous years, only Ks 150,000 per acre had been available, but the amount has now been doubled to Ks 300,000 per acre, she said.

“The loan interest rate is only 5 percent annually for every Ks 100 borrowed, which amounts to just 42 pyas per month. If repayment is made after the deadline, a penalty interest rate of 50 pyas per month per Ks 100 will be charged for the overdue period,” she explained.

Farmers applying for the monsoon paddy loans must personally visit the bank and submit the original Form-7 farmland ownership certificate as collateral. They are also required to personally repay the loans during the harvest season. Loan scrutiny committees have been formed in every village to assist farmers by preparing and submitting the necessary loan contract documents and recommendations, according to Daw Moe Moe Lwin.

She further said, “Farmers are now able to access loans at very low interest rates, with the amount doubled compared to last year. This will help them purchase essential agricultural inputs needed for farming operations. We also encourage farmers to use these bank loans effectively and productively in their agricultural work.”

Sources close to the state agriculture department said that nearly 700,000 acres of monsoon paddy are cultivated annually in Mon State.