Myanmar Finance International Limited

Myanmar Finance International Limited (MFIL) operates as a microfinance institution within Myanmar's developing financial sector, targeting individuals and small businesses traditionally excluded from formal banking services. The company's origins trace back to 2012 with the founding of Myanmar Finance Co Ltd (MFCL) by local businessman U Htet Nyi. MFIL was officially established in 2014 through a joint venture between MFCL and the London-listed Myanmar Investments International Limited (MIL). This strategic move aimed to expand financial services in a country where a significant portion of the population remains unbanked.

The company's shareholder base was further strengthened in 2015 when Norfund, the Norwegian government's investment fund for developing countries, acquired a 25% stake. A major milestone occurred in April 2020 when Thitikorn, a prominent Thai consumer finance firm, reached an agreement to acquire MFIL, signaling a new phase of ownership and potential strategic direction. MFIL's business model is centered on providing credit to micro, small, and medium-sized enterprises (MSMEs) to foster their growth and expansion. The firm generates revenue from the interest on loans disbursed. A key characteristic of its lending practice is that it does not require physical collateral, which lowers the barrier to entry for many entrepreneurs.

MFIL offers loans to individuals and small businesses with terms typically ranging from one to two years. The client base is diverse, with a notable focus on empowering women, who constitute approximately 85% of its clientele in urban and peri-urban areas. The average loan size is around $210, catering to the specific needs of micro-entrepreneurs. By providing these financial products, MFIL plays a role in the governmental priority of poverty reduction through microfinance. The company has operations in key regions, including Yangon and Bago, and has expanded its branch network over the years to better serve its target market.

Keywords: microfinance, Myanmar financial services, MSME lending, small business loans, financial inclusion, joint venture, Norfund, Thitikorn, Yangon, Bago, microcredit, enterprise financing, unbanked population, poverty reduction, financial services for women, collateral-free loans, Myanmar economy, Southeast Asia finance, SME finance, development finance