Title : Analysis of Agricultural Credit Functions of Myanma Agricultural Development Bank Thongwa Branch 

Keywords : Agricultural Cred, MADB, Rural Development, Disbursement Loans, Seasonal Loans, Term Loans

Authors : Nyein Nyein Ei

Description : The study intends to investigate the functions of Myanma Agricultural Development Bank (MADB) Thongwa Branch. MADB is established to give agricultural loans to farmers. Most of MADB’s loans require a joint guarantee of borrowers instead of collateral. Each farmer can get a loan for a maximum of 10 acres. Due to insufficiency of Bank’s capital, MADB has to borrow loan from Myanma Economic Bank and it can provide only seasonal loans and term loans to rural farmers. Seasonal loans for production of two main crops include paddy and pulses in MADB Thongwa Branch. The study found that though MADB can support financing to farmers in cash or in kind or both in accordance with law, it can disburse only credit in cash to rural farmers. MADB Thongwa Branch issued 12400 million kyats to 17509 farmers living in 65 villages in Thongwa Township. The study also observed that the paddy loan is more than the short-term loan and the rural farmers want more loans from the MADB. Based on those empirical analysis results, MADB Thongwa Branch should create sufficient level of seasonal credit and farm implements essential for farming works.