Availing of service in droves- The Mongar branch office has, so far, released Nu 25.97M to 216 clients
GE Loan Scheme 27 July, 2010 - Barely six months since its introduction, farmers, businessmen, civil servants and other private and corporate employees continue to rush to Mongar’s Bhutan development finance corporation branch office to apply for government employee loans.
The financial institution expanded its loan facility from agricultural to GE scheme sometime in March this year and, thanks to its flexibility in repayments, and short, easy procedures, people in Mongar are all for it.
Payslip, letter of undertaking from concerned agencies, security clearance certificate, a copy of citizenship identity card and two passport size photographs are all that is required.
Of its total 216 clients, the financial institution officials said more than 150 applied within last four months, since the scheme’s introduction.
A Kurichu hydropower corporation employee, Tshering Nidup, said that he chose to avail a loan from the corporation than other financial institutions in the dzongkhag because of its short procedures and ease in processing.
“It takes just about a day to process loans that take about a week in other banks,” he said, with the Nu 70,000 loan money in hand. Tshering Nidup said he needed the money to repair his house.
The maximum loan a client can apply for is determined by their pay slip.
The institution gives a maximum of Nu 300,000 at 12 percent interest, equivalent to other financial institutions, to be paid within five years.
The branch office has, so far, released Nu 25.97M.
A majority of the applicants, the corporation employees said, were for the purpose of buying cars, some to help their families, a few for educational purposes and a few still, especially those freshly employed, to settle down.
Mongar branch manager Tenzin Wangdi said the GE loan scheme was introduced towards the end of 2008, with a small loan amount of five percent of the portfolio.
However, it was increased to 15 percent since March. “This was an outcome of the annual regional workshop held in Mongar last year,” he said.
While all provident fund members were eligible for loans, the non-members could also borrow money from the institution, on the condition they produce a guarantor, with a confirmed service of three years.
“We’re targeting employees at all levels, irrespective of their income,” the branch manager said. “Even low-income groups can seek loans, following fulfillment of certain formalities.”
By Tshering Namgyal
