To help students pursue higher education or skills training, the government launched the Concessional Education Loan Scheme today. Under the Economic Stimulus Programme, the scheme offers loans of up to Nu 1.5 M for tuition and living expenses. Students who wish to study in colleges and institutes inside the country and India will be eligible for the loan.
The Concessional Education Loan comes with an annual interest rate of four per cent.
Unlike other loans, the Concessional Education Loan does not require collateral or depend on the parents’ salary.
However, a guarantor is required.
It will be implemented only by the Bank of Bhutan.
Sonam Lhakey, Chief of Credit Division of Bank of Bhutan said, “The student must be below the age of 25 years and should be a Bhutanese citizen. So, the few things that the student should keep in mind are that they should be enrolled full time and if they are the recipient of the full scholarship, they will be ineligible for the scheme. So, they have to also look at their parents or their guardian’s household income. Only if the annual household taxable income is below Nu 500,000 then they will be eligible for the scheme and that will be verified by the DRC.”
She added that if parents have Non-Performing Loans, the applicants will not be able to avail themselves of the loan.
The loan also applies to self-funded courses in public colleges and vocational courses in Bhutan and India for Class XII pass outs or TVET graduates.
The scheme is scheduled to begin this month and will continue until June 2028.
Sonam Lhakey added that “This will be limited by the scheme disbursement amount. The bank is given Nu 150 M for disbursement each year. So, we will assess the application on first come first-served basis. However, the preference will be given to the Gyalsups.”
The repayment starts after the course duration and a grace period of one year. This means that students will get an additional year to search for jobs before they start paying the loan.
Applicants have to apply between January and February for Spring enrollment and, June and July for fall enrollment.
However, for this year’s fall enrollment, applications will be accepted until the end of next month.
According to a news release, the Bank of Bhutan will also reimburse first-semester fees for approved applicants who have already made payments.
Devika Pradhan
Edited by Tshering Zam
