Micro Loan

  • Interest Rate: 5%
  • Project Cost Limit: Nu 500,000
  • Maximum Debt: 100%
  • Loan Tenure: Maximum of 5 Years
  • Collateral Requirement: 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. Agriculture
  • Purchase of saplings, seeds, fertilizer, agriculture machineries, fencing materials, greenhouse materials.
  • Sourcing & Distribution of local farm produce.
2. Livestock
  • Purchase of livestock & its inputs (piglets, chicks, calves, fingerlings, etc).
  • Purchase of product processing equipment.
  • Construction of animal sheds & fish ponds.
  • Pasture land development.
  • Processing unit including related equipment (meat, honey & dairy)
  • Sourcing & distribution of local farm produce.
3. Manufacturing & Production
  • Any Micro loan activities into manufacturing & production of local products.
General Documents
  1. Loan Application Form
  2. Guarantor Form
  3. Copy of valid CID of Applicant, Spouse and Guarantor
  4. Copy of land certificate (Authorization letter and CID copy from land owner in case if the proponent is not the land owner)
  5. Saving account in BDBL after approval.
Additional documents required as per the following categories

Category 1: Agriculture

A. Vegetable & Cereal Cultivation

  • Proforma Invoice copy from supplier (For items costing more than Nu. 20,000/- per items)

B. Horticulture (Not a priority for 2021)

  • Proforma Invoice copy from supplier

Income (Repayment) source: (If harvesting time takes more than 1 year)

  1. Salary-last pay certificate/slip with undertaking letter from concerned agency to repay the EMI.
  2. Business- business license with updated tax clearance and assurance letter from license holder to repay the EMI.
  3. Rental-Confirmation letter from Gup/Mangmi/relevant agencies on the rental income and assurance letter from house owner to repay the EMI.

C. Farm Machineries

D. Mushroom

  • Permit from Department of Forest for billets for shitake mushroom farming.
  • Confirmation letter from National Mushroom Centre/any other certified suppliers for the availability of spawn.
  • Proforma Invoice (For items costing more than Nu. 20,000/- per items)

CATEGORY 2: LIVESTOCK

CATEGORY 3: MANUFACTURING AND PRODUCTION

  • Clearances from relevant authority
  • Proforma Invoice (If applicable)
  • Copy of business license (If applicable)
  • If the manufacturing unit is carried out in a rented apartment (Occupancy certificate, Rental agreement & No objection letter from owner of building/apartment)
  • Other documents as per the nature of project (If applicable)

CATEGORY 4: SERVICES

  • Clearances from relevant authority
  • Evidence of technical expertise and skills
  • Proforma Invoice (If applicable)
  • Copy of business license (If applicable)
  • If the service unit is carried out in a rented apartment:
    • Occupancy certificate
    • Rental agreement
    • No objection letter from owner of building/apartment
  • Confirmation letter from relevant agencies confirming that the applicant is a registered Agri- marketing and logistics service provider if project is for AgriMarketing and Logistics.
  • Other documents as per the nature of project (If applicable).
  1. Client must submit the Additional Loan Form
  2. Generate the CIR of the client and spouse for the last six months to review their status from the date of application.
  3. Carry out inspection & monitoring of the existing project to determine whether the project is operational or not, current cash flow is adequate enough to meet the new EMI and the additional loan is genuinely  required.
  4. Conduct loan appraisal based on the progress and future potential viability of the business.
  5. Use old ticket & forward the proposal for approval from the authorities concerned.
  6. The sum total of the additional and the existing loan should be within Nu 500,000.

Terms and Conditions – Disbursement of Additional loan

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

Micro Loan