The Loden-DHI fund provides interest and collateral free loans to entrepreneurs interested in starting a new business or expanding the existing ones
Yenten Thinley
from Thimphu
Druk Holding and Investments (DHI) granted Nu 20mn for 2016 to the “Loden-DHI Fund” in a joint collaboration to promote entrepreneurship in Bhutan by providing financial support to aspiring entrepreneurs.
Loden-DHI fund under the Loden Foundation is a separate financing window under the Loden Foundation founded in 2015.
The Loden-DHI fund provides interest and collateral-free loans to entrepreneurs interested in starting a new business or expanding the existing ones.
Half the total amount for this year has been funded by the Bank of Bhutan (BoB), a DHI owned company, free of interest.
The total funds will be utilized in three rounds and the continuity of this support will depend on the success of the fund.
According to a DHI official, the size of the fund will range from Nu 100,000 to Nu 1,500,000 but the amount offered will depend on the proposed business project.
This fund aims to combat the rising youth unemployment and contribute towards economic development.
DHI provided a fund of Nu 7mn to Loden Foundation for the year 2015 which was used to finance nine business proposals in the sectors of food processing, manufacturing, agriculture, Information and Technology (IT), among others in different parts of the country.
Loden Foundation has a policy to support only businesses which are ethical and culturally and ecologically conducive for Bhutan. Businesses which can generate employment and are located outside Thimphu are also encouraged.
