Tsirang Dzongkhag’s Priority Sector Lending Committee approved 14 proposals from the public on March 14. The proposals were mostly on opening of livestock and agricultural related farms.
Since the launch of Priority Sector Lending or PSL scheme in the dzongkhag in February this year, the committee received over 28 proposals.
Dzongkhag officials said, it is the result of widespread sensitisation in every nook and corner of the district, which has encouraged many villagers to apply for PSL scheme.
The Dzongkhag Agriculture Sector receives around four to five applicants every day. However, the applicants have limited knowledge on dos and don’ts of PSL scheme.
“You have to focus on how you are going to use the loan. Once you get the loan, you cannot invest in other fields except for what has been reflected in your application form,” said Dzongkhag Agriculture Officer, Dorji Gyeltshen. “There will be strict monitoring from bank and dzongkhag officials on how the loan has been utilised.”
Meanwhile, Pema Yangden, 30, is delighted her proposal is through. She has resettled in Tsirang a few months ago and for daily sustenance, she wants to try her luck in cardamom farming.
“If we venture into cardamom farming, we would be able to generate income. So I am optimistic that I will not have to go through difficulty in repaying the loan,” she added.
The committee has approved loan applications for dairy, poultry, and piggery farm ventures, mushroom farming, waste recycling units and chips producing units. Each of these projects ranges from Nu 60,000 to Nu 500,000.
The Royal Monetary Authority launched the Priority Sector Lending Guidelines in December, last year.
This financial guideline is an integrated platform that coordinates interventions of several government agencies to stimulate Cottage and Small Industry (CSI) sectors as an important component of Bhutan’s economic transformation through improve access to finance.
The Central Bank in consultation with the Finance Ministry and financial institutions came up with the preferential rate (Its ceiling for Primary Production under Agricultural CSI is 8 per cent while for non-agricultural CSI & value addition in Agricultural CSI, it is 8.5 per cent).
For primary production under agriculture sector, an individual can get loan of Nu 500,000, and for groups or cooperatives and incorporated companies, they are eligible to get loan of Nu 10m.
RMA approved the PSL guidelines during the board meeting in June this year. The guidelines is the result of His Majesty’s Royal Address during the 109th National Day celebration in Trongsa in 2016.
