Contact Center : 1424 info@bdb.bt

འབྲུག་གོང་འཕེལ་དངུལ་ཁང་།།

Bhutan Development Bank

Your Development Partner Since 31st Jan 1988

Banking Hours

Summer

Monday - Friday : 9:00AM to 4:00PM

Winter

Monday - Friday : 9:00AM to 3:00PM

(Saturday : 9:00AM to 11:00AM)

MLR

7.04%
w.e.f February 2018

Group Loan

Introduction

To increase accessibility of poor farmers to formal financial services, the bank in 1998 introduced Group Guarantee Lending and Savings scheme. Under this scheme the loans are given to individual group members on the guarantee of other group members. 

Eligibility

  1. Bhutanese citizen with valid citizenship identity card;
  2. Age above 18 years and below 65 years;
  3. Possess good moral character
  4. Have not been in a position to avail credit facilities under formal lending system and those interested to take loans under the group scheme
  5. Enterprising and willing to work in groups and improve their livelihood
  6. Only one individual member per house hold 
  7. Should have attended group sensitization/training.

Group members composition

The group can be homogenous where all members are of same sex or heterogeneous where both male and female members can be in the same group. 

Group size

A group should have minimum of 3 and maximum of 7 members. Only one member per household can join the group scheme. A household here is defined as number of people living and dining under the same roof and shares the benefits and costs.

Loan size

Maximum of Nu.300,000 (Three hundred thousand) per member subject to the viability of the proposal, repayment capacity, past track record if credit was availed before and endorsement from other group members and centre chairman.

Interest rate

10% per annum calculated on a diminishing balance method which may be revised from time to time.

Loan term

Maximum of 5 years.

Repayment frequency

The loan repayment frequency can be weekly, monthly, quarterly, half yearly or yearly as per the cash flow timing (project income as well as other income sources) of the members. 

Individual Compulsory Saving Account (ICSA)

Every member should open an ICSA and deposit Nu.100 every month till the dissolution of the group.

For Vegetable Vendor Group, Micro Enterprise Loan (BCCI scheme) and other specialized group, the members shall deposit Nu.500 every month till the dissolution of the group.