Bank of Bhutan

1. Eligibility

• Should be a Bhutanese Citizen.
• Secured admission to Professional / Technical courses through Entrance Test / Selection process.
• Secured admission to foreign University / Institutions.
• Parents/students/guardians that can provide adequate collaterals and guarantee.
• Employees with a minimum of 3yrs confirmed service and with guarantee.

2. The loan is allowed for the expenses such as fees payable to college, school or hostel. For purchasing Books and other study materials, security deposits and other refundable deposits.

3. The Maximum amount allowed as loan is Nu. 900,000/- per student @ 7.49% (floating-reviewed after every 6 months) rate of interest for studies in Bhutan and Nu. 3,000,000/- per student @ 7.49% (floating) rate of interest for studies abroad.

4. Loans should be backed by only fixed assets as collateral security.

5. However, the loan limit will depend on the tuition fee including expenses other than the actual fee or the maximum cab of 60% of the value of the collateral security or maximum financing limit whichever is less.

6. Limit - Up to 20 times the net salary in case the loan is not collaterals and guarantee. In case the loan is backed up by collateral securities, the salaried clients are eligible for the following:

• 30 times the applicants’ monthly net salary or Nu.900,000/- with no less than 30% of the gross salary as net take home pay (including proposed loan) or
• Salary of both husband and wife or any two guardians or relatives can be considered for the limit computation. However, the maximum limit that can be financed is 30 times their combined net salary.

7. The Education Loan can be availed against the parents’ salary or against collateral securities.

8. All loans should be secured by the fixed assets of the parents/guarantor. In case of employees, guarantee to be provided by the salary disturbing officers or an employee having same or higher grade. Loans to be in the name of the Parent or the Guarantor.

9. Repayment period is maximum 7 years and the repayment starts from one month after the completion of studies.

10. The documents required for education loan are:

• Education loan application duly filled in by the applicant
• Mark sheets of last qualifying examination
• Provisional admission or latest academic admission of the University/College (RTC will provide proof after admission is provisionally confirmed)
• Citizenship Identity Card copy of the applicant
• Citizenship Identity Card copy of the guarantor
• Consent letter from guarantor
• Proof of income of Parents/Guardian
• 2 passport size photographs
• No objection certificate from employer to pursue further studies, irrevocable letter and pay slip if in case employed
• Ownership certificate of assets
• Valuation of assets

11. The following documents are to be submitted on the provision of the collateral:

• Ownership certificate of collateral security offered to bank
• Property valuation/assessment certificates/drawings of buildings conducted by BoBL’s engineer
• Valid insurance copy of the collateral securities charged in case of buildings
• Stamped and witnessed Letter of Consent for extension of charges duly signed by the property owner (if applicable)
• Letter of Consent (if applicable) if guaranteed
• Proof of income to service the loan – rental income statement signed by the tenants and the landlord/BIT/PIT/Salary Slip duly certified by the Department concerned
• Letter from the applicant that rental income will be tied up for payment of loans (if applicable)

12. If repayment is tied to the salary the following documents are to be submitted:

• CID copy of guarantor (equal or higher grade with three years of confirmed service from same department)
• An irrevocable letter of authority from the applicant to his employer for deduction of monthly loan instalment from salary
• An irrevocable letter of authority from the employer to deduct the monthly loan instalment from salary of applicant and remit to bank
• Latest Pay Slip of the applicant(s) and guarantor duly filled by salary disbursing officer, signed and sealed by salary disbursing officer & recommendations

Bhutan Development Bank Ltd (BDBL)

1. Eligibility

• Should be a Bhutanese citizen
• Secured admission in institution recognized by the Ministry of Education
• Students should have secured pass mark in last qualifying examination
• Parents/students/guardians that can provide adequate collaterals and guarantee.

2. The maximum amount allowed as loan is Nu. 300,000/- only @ 10% rate of interest for studies in Bhutan as well as abroad.

3. All loans should be secured by the parent(s)/guardian of the student borrower.

4. Collateral securities required for the loan availed.

5. Repayment period is 5 years and the repayment starts from one month after disbursement of the loan amount.

6. The documents required for education loan are:

• Completed Education Loan Application Form
• Mark sheets of last qualifying examination
• Proof of admission in higher studies
• Citizenship Identity Card copy of the applicant
• Citizenship Identity Card copy of the guarantor
• Consent letter from guarantor
• Ownership certificate of collaterals
• Valuation of collaterals
• Copy of course prospectus and fee structure
• 2 passport size photograph

Druk Punjab National Bank

1. Eligibility

• Should be a Bhutanese Citizen.
• Secured admission to Professional/Technical courses through Entrance Test/Selection process.
• Secured admission to foreign University/Institutions.
• Student should have secured pass marks in the qualifying Examination for admission to Graduation Courses.

2. The loan is allowed for the expenses such as fees payable to college, school or hostel. For purchasing Books and other study materials, security deposits and other refundable deposits.

3. The Maximum amount allowed as loan is Nu. 0.40 Million @ 25% rate of interest for studies in Bhutan and Nu. 1.50 Million @ 15% rate of interest for studies abroad.

4. No collateral securities required for a loan up to Nu. 400,000/- only

5. Suitable guarantee, most probably from parents or guardian according to the net worth of such party’s up to Nu. 400,000/- only and a tangible collateral security are required for the loan above Nu. 400,000/- only.

6. All loans should be secured by the parent(s)/guardian of the student borrower.

7. Repayment period is 5 years and the repayment starts from one month after disbursement of the loan amount

8. The documents required for education loan are:

• Completed Education Loan Application Form
• Mark sheets of last qualifying examination
• Proof of admission in higher studies
• Citizenship Identity Card copy of the applicant
• Citizenship Identity Card copy of the guarantor
• Consent letter from guarantor
• Pay slip and irrevocable letter from employer if in case employed
• Ownership certificate of collaterals
• Valuation of collaterals
• Copy of course prospectus
• Proof of income of Parents/Guardian
• 2 passport size photographs

National Pension and Provident Fund (NPPF)

1. Eligibility:

• Should be a Bhutanese citizen
• Secured admission in institution recognized by the Ministry of Education
• Should be a PF member or the guarantor should be a PF member
• Students should have secured pass mark in last qualifying examination

2. The loan could be availed by those deserving students who are in need of financial support to pursuing higher education such as degree courses, professional courses and vocational trainings.

3. NPPF provides two types of loan:

I. Education loan:

• It is provided only to the PF members who having school-going children for any classes from Preprimary to Degree level.
• Up to a maximum of Nu.500,000/- only (actual amount shall be determined by the repayment capacity) is provided @ 9.50% rate of interest if the repayment period is 1 to 5 years. If the repayment period is 6 to 10 years, the interest rate is 9.7% and in case of repayment period of 11 to 15 years, the interest rate is 10%.
• Up to Nu.500,000/- only no mortgage is required provided repayment capacity is sufficient.
• Repayment starts from one month after disbursement of the loan amount.

II. Student loan:

• It is provided to those students who have completed class 12 and wants to pursue further studies.
• Loan should be guaranteed by the PF member along with mortgage.
• The maximum amount allowed as loan is Nu.1,000,000/- only @ 8% rate of interest during the study period and 9% after the completion of studies.
• The tuition fees are paid directly to the college or institution.
• Repayment period is maximum of 15 years and the repayment starts from one month after disbursement of the loan amount.

4. Documents Required:

• Student loan application form to be submitted in soft copy
• A copy of Citizenship ID card to be submitted in soft copy
• One passport size photograph
• Admission letter
• Copy of course prospectus and fee structure
• Letter of Guarantee from the Guarantor to be executed in NPPF
• Mark sheets of X and XII grade with merit certificates if any. Last qualifying certificates for vocational trainings
• Undertaking from the respective Department immediately after employment
• Compulsory loan protection insurance duly signed

Note: For information on the Collateral, Repayment options, Assessment of repayment capacity, Release of loan and monitoring system, please log on to www.nppf.org.bt