Bhutanese students and youth wishing to pursue higher studies or develop skills abroad can now avail loan up to Nu 1.5 M.
Financial institutions will provide the loan for a period of five years. The Royal Monetary Authority (RMA) in collaboration with finance and labour ministries launched the “Overseas Education and Skill Development Scheme” in the capital, yesterday.
Under the new scheme, students can avail loan at 8% interest rate per annum. The central bank and financial institutions have waived off collateral and mortgage requirement.
Instead a letter of acceptance from the university or vocational institutions attested by labour ministry will be used as a condition of loan.
“One of the reasons why people from the weaker section of society could not access existing facility is because of need to have mortgage and guarantor to avail loan. Such conditions have denied access to avail loans. The new scheme is much more beneficial as they don’t require mortgage,” said the Director General of the Department of Employment, Sherub Tenzin.
He added that the program will enable youth to enhance their knowledge and skills. It will also allow students to study and earn. The loan will be granted based on slots offered by different countries.
“For instance, if we receive 5 or 10 seats for training and working in Japan, labour ministry will verify the offer. After that’s done, the ministry will announce on its official website, media, and agents”.
A committee will be formed to evaluate the impact and status of the scheme. The committee will have members from the central bank, finance and labour Ministries, and the financial institutions.
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