More than 2,000 Desuups have been trained and skilled through the Desuung Skilling Programme (DSP) so far. But many are struggling to put their skills to use due to a lack of finance. To help these individuals, the Bank of Bhutan launched the DSP start-up loan today. Under this new scheme, skilled Desuups can get loans of up to Nu 5 M from the bank without mortgage or collateral.
Access to finance, because of collateral requirements, is one of the biggest impediments to setting up a business. It is the same for Desuups who acquire various skills from the skilling programmes and wish to earn a living through it.
The DSP Start-Up loan aims to support young budding entrepreneurs pursue business opportunities, addressing youth unemployment issues, and strengthen the economy. It has been approved and classified under the Priority Sector Lending portfolio.
“When you refer to the skilling programmes that the DSP is providing just now, I think there are about 47 plus skilling programmes. From the basic thing of haircutting to bakery and even in construction, we found it relevant to support this programme,” said Dorji Kadin, the CEO of the Bank of Bhutan. “Through this scheme, we are hoping that we can help people come up with their own new business startups so that in the future, Bhutan can be self-reliant and maybe it can also help in the overall progress of the country”.
To get the loan, a Desuup needs to complete the skilling programme and the DSP Financial Literacy programme. The Desuup should also have a clean credit record and a letter of recommendation from the Desuung office.
During the launch, three Desuups trained in ICT skills signed their loan agreements.
“I am just taking up a small loan to go for further training in India,” said one of the loan recipients, Karma Norzin. “Once I have completed my training, I will try to set up my own digital marketing agency kind of a thing with a group of two or three.”
“Even if one of us is skilled, it will be difficult to start a business without financial support. When I go to India to train and work, I really need a laptop. That’s why I got this loan today,” said Thinley Dorji.
The loan ceiling for individuals is Nu 500,000, for partnerships, it is Nu 1 M per person and up to a maximum of Nu 5 M for five or more partners. Cooperatives involving 15 or more people can also get a maximum of Nu 5 M. The loans will be provided at an interest rate of 8 %.
Today, over a thousand Desuups are undergoing skilling programmes in over 45 courses.
Tshering Dendup
Edited by Yeshi Gyaltshen
