Cottage Industry Loan

  • Interest Rate: 8%
  • Project Cost Limit: > 0.5M to 5M
  • Maximum Debt: Debt 75%, Equity 25%
  • Loan Tenure: Maximum of 10 Years
  • Collateral Requirement: Assets + Guarantor
  • Repayment Frequency: Monthly/ Quarterly/ Semi/ Yearly (Based on the nature of Project)
  1. Any Bhutanese Nationals above 18 years to 65 years except students, monks and nuns or employed at the time of application
  2. Individual borrowers and partnerships, fulfilling the above clause
  3. Co-operatives, associations, farmers group and exporters
  4. Must not be declared bankrupt under the Bankruptcy Act of Bhutan
  5. Credit worthy Applicant, spouse and guarantor who have clean credit information report (CIR) for his/her past loan(s).
  6. Those Applicants who have had bad CIR in the past but have cleared the outstanding or closed the loan account in the recent time. However, the applicant can apply after 6 months of cooling period accompanied by a clean CIR.
  7. Where borrower/ spouse has loans with other financial institutions for activities/ project other than the proposed project with NCSIDBL, the sum total of the previous loan availed and the proposed funds from NCSIDBL shall not exceed Nu. 20 million.
1. Processing
  • Farming contract
  • Rural Cooperative financing
  • Promotion of biogas facilities
  • Development of rural-based cottage industry (winery, juice production, etc.
  • Construction of warehouse and cold storage facilities.
  • Production, processing, and marketing of wood-based products.
  • Production, processing, value addition, and marketing of mines and minerals.
2. Value Addition
  • Development of farmhouses and homestays in strategic locations as determined by the relevant agency.
  • Grading, packaging, and marketing of agro and dairy produce (agriculture produce)
  • Herbal medicine plantation and marketing.
  • Processing, packaging, and marketing of food items including meat products (only limited to domestic produce)
  • Import/Supply of Farm/agriculture machinery
  • Sourcing and distribution of local produce
  • Purchase of agro packaging materials for shipment
  1. Loan Application Form
  2. Guarantor form / NCGS form if applied under NCGS
  3. Copy of valid CID of applicant, spouse, and guarantor.
  4. Copy of land certificate (Authorization letter and CID copy from landowner in case if the proponent is not the landowner)
  5. Project proposal (Guidelines for preparation of Business Plan)
  6. List of Assets Form (Download)
  7. Approximate Construction Cost Form (Download)

Additional documents are required to submit after approval

  1. Approved drawing and cost estimates from Dzongkhag Engineer/relevant authority
  2. Business license
  3. Proforma Invoices
  4. Relevant clearances, if required.
  5. If the service unit is operated from a rented apartment:
    • Occupancy certificate.
    • Rental agreement
    • No objection letter from the owner of the building/apartment
  1. The client must submit the Additional Loan Form.
  2. Generate the CIR of the client, guarantor, and spouse.
  3. The loan should be active and the repayment should be on time without any default.
  4. Carry out inspection & monitoring of the existing project to determine whether the project is operational or not, current cash flow is adequate to meet the new EMI and the additional loan is genuinely required.
  5. Conduct loan appraisals based on the progress and future potential viability of the business.
  6. Use old ticket & forward the proposal for approval from the authorities concerned.
  7. The total of the additional and the existing loan should be within Nu 10 Million.

Terms and Conditions – Disbursement of Additional loan

  1. All additional loans are to be disbursed as an add-on to the existing loan in the system provided the interest rate is the same. In case, the interest rate differs from the existing loan, it will be disbursed as a new loan under the same customer ID.
  2. The loan term shall be determined case by case.
  3. New EMI shall be generated.

Cottage Industry Loan