CSC executives trained for ESP loan disbursement

The Government had earlier announced that the Economic Stimulus Program (ESP) did not proceed as planned. The primary obstacle in the ESP rollout was the public and field workers’ unfamiliarity with the application process for the scheme. To address this, the Government conducted workshops to familiarize participants with ESP procedures. The capacity of all executives from each Community Service Center (CSC) was strengthened to facilitate applications for ESP loans.

Since the ESP’s launch, which injected Nu. 5.3 billion into financial institutions, there has been widespread confusion regarding loan availability, documentation procedures, and eligibility. Now, CSC executives are fully equipped with knowledge on applying for ESP loans and writing business proposals.

The workshop aimed to educate and equip the Community Center Executives (CCE) in each Gewog on filling out forms for Window 1 – Concessional Credit Line (CCL) and Window 2 – Reinvigoration Fund, covering the basics of financial terminology. Most executives shared that, initially, they were unfamiliar with application procedures, finding the financial sections particularly complex.

Roshni Rai, executive of Rangthaling Gewog, Tsirang, said that while the public knew the ESP loan was offered at 4% interest and collateral-free, “we faced difficulties in understanding how to apply or who was eligible.” After attending the workshop, she not only understood how to complete the CCL form but also gained clarity on eligibility and the loan tenure.

Executives Kinley Zam and Nima Wangmo of Nagkor and Shingkhar CSC, Zhemgang, noted that neither farmers nor executives were aware of the loan ceilings for different ESP loans. Kinley Zam explained that they initially had no idea how to fill out the forms, and “some people even thought it could be used to pay off other outstanding loans.” Nima Wangmo added that the public was frustrated by the procedures.

With the training, executives are now confident in their ability to facilitate applications and encourage eligible individuals to apply for loans. Familiar with their communities, they also consider applicants’ past records.

The CSC executive of Merak, Trashigang, Ugyen Chophel, shared that due to an initial lack of knowledge about ESP loan disbursements, their center referred clients to the Gewog extension office. Now, Ugyen Chophel has developed his capacity and is prepared to guide the public, even assisting with project calculations and feasibility assessments.

Executives from Tading, Yoeseltse, Namgaycholing, and Samtse CSCs noted that they were initially uncertain about loan eligibility. Many applicants had approached them for loans, but “we couldn’t advise them confidently.”

Most applicants from the South have applied for poultry, piggery, and doma projects. Executives expressed that all major issues were addressed during the workshop.

One of the trainers, Sonam Phuntsho, Director of the Financial Institutions Training Institute (FITI), noted that executives initially lacked field knowledge, leading to confusion for both the public and executives. He explained that the training now enables them to assist in writing proposals, ensuring executives and Local Government (LG) leaders can support proposal submissions to banks.

Officials from the Royal Monetary Authority, the ESP Secretariat, and banks confirmed that CSCs will serve as the first point of contact for ESP loan disbursement.

The Participating Financial Institutions (PFIs) and the Royal Monetary Authority (RMA) conducted a three-day capacity development program for Community Center Executives from October 21-23 at the Royal Institute for Tourism and Hospitality, Thimphu. This program, organized in collaboration with FITI, was recommended by the Prime Minister after virtual trainings proved insufficient.

This loan is available to small and medium-scale industries in sectors like primary agriculture and livestock production/manufacturing, supporting both new and expanding businesses in targeted areas.

By Maisuri Rai & Sangay Rabten, Thimphu