The Bhutan National Bank Limited (BNBL) in Trashigang disbursed its first priority sector lending (PSL) scheme of Nu 500,000 for cardamom farming.
The money was lent to a farmer Nedrup from Buna village in Shogphu at an interest rate of eight percent per annum.
Under the PSL scheme, lending to cottage and small industries (CSI) sector is prioritized. The CSI sector is divided into agricultural CSI and non-agricultural CSI activities.
Credit officer Dorji Dema based in Trashigang said that loans up to Nu. 10 million can be availed under the scheme at a preferential interest rate of eight percent per annum for agricultural CSI (primary production) and 8.5 percent per annum for non-agricultural activities.
According to the Credit Officer, to access the PSL, the interested applicants must first approach the gewog centers of their respective dzongkhags where the business is to be established.
“At the gewog level, the manpower, land, market, support from departments concerned and input materials among others are examined to study the feasibility of the business,” the credit officer added.
The credit officer said that the work on the business will be strictly monitored by the bank and the concerned stakeholders since the loans are provided without a collateral.
Any individual, group or incorporated companies can avail PSL to a maximum of Nu 10 million for new projects as well as for business expansion.
Meanwhile, Nedrup said that he processed for the PSL as it is a special credit facility.
“I am very grateful to our visionary King for his insightful thought for the benefit of our people.”
The bank has received a few more proposals for the PSL.
Jigme Wangchen from T/gang