It may sound surprising, but properties are commonly purchased with cash or offshore bank transfer in Myanmar, as financing options have been largely unavailable. However, recent banking sector reforms, as well as the Condominium Law, have begun to change this. 

A new Investment Law is expected to come into effect in 2017. However, the current Foreign Investment Law provides three options for investing in Myanmar: 100% foreign capital provided by investors, a joint venture with local capital or various other co-operation between the government and private companies. This means investors must source their finance outside of Myanmar’s domestic banks.

It is worth noting that collateral-based lending is available in Myanmar, with land the main type of collateral. Foreign banks can lend if a Myanmar bank acts as a collateral agent in between. Usually, the local currency lending rate is 12 per cent per annum and customers can receive a loan worth 50 per cent of the property, according to Yoma Bank, one of Myanmar’s largest private banks.

Since 2015, the Central Bank of Myanmar has granted licences to a number of foreign banks to operate in Myanmar. The licence limits those foreign banks to foreign currency loans, while domestic borrowing in the local currency is provided by local commercial banks. Foreign borrowing and foreign equity investments require prior approval from the Myanmar Investment Commission. A 15 per cent withholding tax on interest paid to non-resident lenders is also in effect. As yet, few deals have been made through these arrangements, though it is hoped this will change in the future.

According to the Central Bank of Myanmar, 13 foreign banks have been granted licences to operate within Myanmar as at November 2016.  

Bank of Tokyo-Mitsubishi UFJ
Oversea-Chinese Banking Corporation
Sumitomo Mitsui Banking Corporation
United Overseas Bank
Bangkok Bank Public Company
Industrial and Commercial Bank of China
Malayan Banking Berhad (Maybank)
Mizuho Bank Limited
Australia and New Zealand Banking Group
The Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV)
Shinhan Bank
E.Sun Commercial Bank
State Bank of India

Source: http://www.dica.gov.mm
www.cbm.gov.mm

Similar to this:

Thailand: obtaining finance as a foreigner

Obtaining finance in Indonesia

Obtaining finance in Japan