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They face difficulties in getting loans and starting business without paying their deposits. The government has allocated Rs 5 lakh crore to banks under the economic support package.
The Office of the Assistant Minister for Economic Affairs announced yesterday the launch of the first phase of the economic support program low-interest loans.
Finance Minister and Chairman of the Economic Council Leski Rinpoche said the first phase of interest rebates will be borne by the government or businesses. He said the government’s focus is on developing the overall infrastructure and business environment.
Phase 2: Other organizations and priority area initiatives will start immediately, with a roll-in plan.
There are two ways to get funding through low-interest loans and entrepreneur support.
The minister said the loans will be used in agriculture, animal husbandry, manufacturing and small-scale industries as well as medium-scale production and manufacturing.
Another program is to provide low-interest loans to those who qualify and have opportunities to improve their businesses, and they will receive financial support.
The loan interest rate will be less than 4%, no collateral is required, and it must be backed by assets.
The Business Support Fund provides loans in two ways: Interest discount The government applies a 4% interest rate to traders who do not repay their loans for three years, but borrowers can get loans at 4% interest.
For example, if the bank loan interest rate is 10%, the borrower can get a 4% discount from the Economic Support Fund system if the interest percentage paid by the borrower does not exceed Rs. 6.
However, the borrower may qualify for one of two types of loans, either a reduced interest rate or an additional loan.
The minister said the rate cut regime would create new business opportunities and existing business opportunities, as well as contribute to the Economic Support Fund and stimulate economic growth.
Regarding the Trade Support Fund, the minister said it will promote trade recovery and economic development, and the government will provide low-interest loans to those who qualify.
Leski Rinpoche expressed the expectation that businesses would be able to reap the benefits and activities of the system. This is happening.
However, the minister also expressed concern about the abuse of support measures and he urged financial institutions to take full responsibility in assessing the current situation.
For the program to be successful, Gewogs and Dzongkhags must be able to import, trade or consume. Ensure that funds are available to those who need them for production and manufacturing. Technical assistance will be provided to the extension officers of the ministry. Agriculture and animal husbandry are.
Funding Allocation
Under the loan discount, the government has allocated Rs 50 crore for agriculture and animal husbandry and eligible applicants will be able to avail a loan of Rs 10 lakh at an interest rate of 4% from the respective banks.
The company includes crop cultivation, fish farming, poultry and pig farming, cattle and other animal breeding and agricultural machinery, agricultural infrastructure and support, and dairy products.
Under production and manufacturing, the government has allocated Rs 500 crore for organic and priority agriculture, besides home services and small industries and manufacturing without modification.
The government has allocated Rs 30 crore for developing the commercial sector and increasing film production, and Rs 20 crore has been allocated to the state.
Companies can also avail loans up to Rs 10 lakh for a tenure determined by the bank.
For agricultural produce and natural resources outside manufacturing and manufacturing, borrowers have been offered loans up to Rs 10 crore.
In addition, the government has allocated Rs 2 billion for the Entrepreneurship Promotion Fund and System, under which businesses in difficulty and eligible for renewal will be able to avail loans.
However, housing, personal transport, trade (import-related businesses), personal loans (bank cards) and education, tenure-related appointments, shares), staffing facilities and hospitality and tourism companies are not eligible for funding.
Borrowers under the Economic Support Fund will receive 100 loans based on the value of the projects available.
Letter submission process
Borrowers are required to submit a letter of credit from a participating bank.
Interest-bearing loans and business support funds from Bhutan Commercial Bank and the National Bank of Bhutan, the Development Bank of Bhutan, PNB Bank of Bhutan, and five banks and non-bank institutions including the National Insurance Company of Bhutan, the Insurance Regulatory Authority of Bhutan and the National Pension and Livelihood Bank will also provide support.
The bank will disclose the loan limits and loan letter process, and Cash Homes will assess the loan letter based on the Economic Support Fund’s criteria.
The application deadline for low-interest and business support loans is December 31 this year.
Ugyen Dorje
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