Easy access to finance has always been one of the challenges for small and medium businesses in the country. The pandemic has also made the matter worse for them. Acknowledging the importance of access to finance, an awareness programme on credit lending schemes was conducted in Thimphu, today. It is to bring together the private sector and the financial institutions to share information about various lending schemes available.
The awareness programme was conducted in three districts as of today. During the programme in Thimphu, the financial institutions highlighted aspects of the various lending schemes including the different rates and terms of their individual banks. It is to provide different options for the businesses so that they can make an informed decision.
According to Rinchen Tshering, the National Programme Coordinator for EU-Bhutan Trade Support, most participants from the western districts are aware of the credit schemes. “Although not in specific like a term loan, interest rate and everything. But then those private sectors coming from the east, are not aware of the creation of NCGS office per se and NCSI bank. Through this awareness workshop, I think we were able to resolve so many issues and make them understand the credit access without a mortgage.”
Although the business individuals regarded such a programme as helpful, some said this kind of awareness will be more helpful to aspiring entrepreneurs.
“I have been in the business for five years. So for me, I do not need a startup loan anymore. I need a scale-up loan or a bridging loan or there are other schemes also. So if the institutions could also focus on that, it would benefit the entrepreneur ecosystem,” said Sonam Chokie, the Founder of Bhutan Herbal Tea.
The participants also raised the non-performing loan issue that is hampering access to loans.
“Just because the NPL is increasing over time, banks should not stop giving out loans. There are people who immediately need finances. Banks are discussing what to do with NPL and it is also their responsibility to help people,” said Rinchen Khandu, the Chairperson of the Dzongkhag Business Development Committee in Haa.
The programme was initiated by the Bhutan Chamber of Commerce & Industry in collaboration with the International Trade Centre as part of the implementation of the European Union’s Bhutan Trade Support Project.
Samten Dolkar
Edited by Sonam
