Knowing that not many in Tsirang are aware about the recent launch of Priority Sector Lending (PSL) and its guidelines, the dzongkhag administration initiated to carry out widespread awareness on it.
Coinciding with His Majesty’s birthday on Wednesday, the dzongkhag erected a stall at the Damphu football ground to reach out to more people.
Dzongkhag officials told BBS News that the stall attracted good number of aspiring entrepreneurs. If people process for loans under PSL, it will boost local economy in the dzongkhag, added the officials.
“Tsirang is a favourable place for small and cottage industries. If people do business, they will make good money,” said Dorji Gyeltshen, the Dzongkhag Agriculture Officer.
Locals there said, availing loans under PSL is easy. “I don’t need to look for a guarantor and witnesses. It is simple to apply and once I get the loan, I will open a business,” said one of the businesswomen, Rayang.
The Royal Monetary Authority launched the Priority Sector Lending Guidelines in December, last year.
This financial guideline is an integrated platform that coordinates interventions of several government agencies to stimulate Cottage and Small Industry (CSI) sectors as an important component of Bhutan’s economic transformation through improve access to finance.
The Central Bank in consultation with the Finance Ministry and financial institutions came up with the preferential rate (Its ceiling for Primary Production under Agricultural CSI is 8 per cent while for non-agricultural CSI & value addition in Agricultural CSI, it is 8.5 per cent).
For primary production under agriculture sector, an individual can get loan of Nu 500,000, and for groups or cooperatives and incorporated companies, they are eligible to get loan of Nu 10m.
RMA approved the PSL guidelines during the board meeting in June this year. The guidelines is the result of His Majesty’s Royal Address during the 109th National Day celebration in Trongsa in 2016.
