According to the Member of Parliament (MP) of Dewathang Gomdar, Ugyen Dorji, many farmers in rural Bhutan are struggling in repaying loans on time leading to the seizure of their mortgaged properties.
He asked the Finance Minister on consideration of low and affordable interest rate for farmers while seeking loans from Bhutan Development Bank Limited (BDBL).
The MP asked the question during the Question Hour session of the National Assembly today.
“I am wondering whether the bank has been serving its purpose. I also doubt if the bank is doing proper assessment while granting loans. There are innumerable cases where farmers lose their homes and lands for failing to repay loans on time. So, I would like to know from the Finance Minister about this matter?” asked Ugyen Dorji, the Dewathang-Gomdar MP.
Responding to the MP’s query, the Finance Minister said apart from BDBL, farmers will soon be able to process loan from CSI bank at lower interest rates.
“BDBL provides 60 per cent of loan to its rural clients. However, I would like to reiterate that one must think properly before availing loans. However, we will improve rural financial services in future. Also, CSI bank will soon be instituted where rural clients can seek loans at lower interest rates,” said Namgay Tshering, the Finance Minister.
The Bhutan Development Bank has been providing rural financial services since 1988.
Choni Dema
