Bhutan Development Bank, Bhutan National Bank and Royal Insurance Corporation of Bhutan reduced its lending rates with effect from October 1. The revision is following a circular issued by the Royal Monetary Authority after the introduction of the Minimum Lending Rate of 6.75 percent.
On an average interest rates for various loans provided by the Bhutan Development Bank Limited have been reduced by 1.73 percent.
For instance, for the most common loans availed- Employee Loan and Home settlement Loan- the interest rate has come down to 9.75 percent from 13 percent.
The revised lending interest rates is applicable to the new borrowers and the existing clients on fulfilling certain terms and conditions of the bank.
Bhutan National Bank, on an average reduced its lending rates by 1.75 percent.
Royal Insurance Corporation, on an average reduced lending rates by 1.15percent.
These rates will be revised on half yearly basis depending on the Minimum Lending Rate set by the Royal Monetary Authority of Bhutan.
The new interest rate policy is expected to generate more competition among the financial institutions.
