Farmers in Mon State say that fewer people are borrowing monsoon rice loans this year because of stricter checks by the Myanma Agricultural Development Bank (branch offices). Borrowers now need to come in person with official land ownership Form-7, and more documents are being asked for than before.
In previous years, family members could collect the loan on behalf of the landowner. But this year, only the person named on Form-7 can collect the loan. Bank officials said this new rule is to prevent misuse of the money.
A female farmer from Mudon Township said, “Now only the person whose name is on the Form-7 can collect the loan. In the past, family members could do it. But this year, they said we must come in person. If the landowner has passed away, the name must be changed officially first. They worry others might misuse the loan.”
Changing the name on Form-7 requires a process at the local administration office. All family members on the household list must sign, which makes the process difficult.
Another farmer from Ye said that more documents are being asked for, and the bank is checking everything carefully. “We get this loan every year, but this year they check more. Before, only I needed to bring my ID, but now they also ask for my wife’s ID.”
The Myanma Agricultural Development Bank gives monsoon rice loans with a 2% interest rate. Farmers get 150,000 kyats per acre. Loans started being given out in the third week of May, and are organized by township.
Only one village per day is served at the bank. Villages that did not repay their loans on time last year are served last. Because of this, some farmers are worried they won’t get the loan before planting time.
Farmers must repay the loan in January, after they harvest and sell the rice.
