National Cottage and Small Industry (CSI) Bank Limited approved 36 projects worth over NU 25 M today. These approved loans are expected to produce farm produce such as vegetables, dairy and livestock towards food self-sufficiency amidst the COVID-19 pandemic.
From over 156-loan application received so far under the non-formal loan sector, which has a ceiling of Nu 500,000, the bank approved 28 projects worth over Nu 5 M. Similarly, under the formal loan that is above Nu 500,000, the bank approved eight projects from 24 applicants. The Bank was planning to approve projects worth over Nu 100 M, however, while prioritising food-producing schemes the bank was able to approve only 36 projects.
“To disburse the loan, there are few paper works to complete that will depend upon the applicants. For example, if they can provide the necessary documents to us tomorrow after its approval today we are ready to disburse the loans tomorrow itself. So to release the loans sooner we appointed project officers each to approved the projects. They will do the follow-up,” said PemaWangdi, the CEO of the National CSI Bank.
Meanwhile, the government is also looking into reducing the interest rate of the priority sector lending through the National CSI Bank. This is to encourage farmers to take up commercial farming to confront the worst-case scenario of COVID-19.
“We had a discussion a few weeks back. We were also informed informally that interest rate in priority sector lending particularly in areas to agriculture farming and livestock production has to be reduced to two per cent for the period of six months. It is in view of COVID-19 scenario that our country is confronted with. However, we did not get in writing from the government as to whether this must be implemented immediately,” he added.
The bank is approving these loans after its inaugural in February this year.
Namgay Wangchuk
