After eight months since the suspension of loan facilities by all the financial institutions in the country, Bank of Bhutan (BoB) has finally started accepting applications for loans.
But the bank is yet to reopen housing loans facility.
The move comes following a slight improvement in the Bank of Bhutan’s deposit with the Royal Monetary Authority (RMA).
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Our fund position has improved which means our balances with RMA have increased.”
Kesang Wangmo
Media Focal Person,
Bank of Bhutan
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“Our fund position has improved which means our balances with RMA have increased. By balances, we mean our deposits have increased and loan repayments have been steady,” said BoB’s Media Focal Person, Kesang Wangmo.
However, she says they do not have unlimited funds unlike last year. “The available funds are being allocated as per sector exposure and region wise,”
Last year, BoB had loaned out about Nu.6 billion against this year’s Nu.2 billion .
While the bank will focus on the financing productive sectors it will also consider the personal needs of individual clients.
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No new loans in housing sector to be considered irrespective of construction approval dates
Housing portfolio having already crossed the maximum exposure limit
For transport loans, BoB to finance those vehicles already inside the country only
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The lending will be done as per the revised interest rates that have been calculated on its base rate. The base rate stands at 10.38 percent. A tenure and risk premium will be added to this rate for calculating the actual lending rate for various loans. The base rate, however, could come down as the bank’s cash situation improves.
