The Bhutanese Leading the way.
On the morning of 2nd June 2026, the Bank of Bhutan (BoB) issued a notification stating that the application window for the ESP Education Loan scheme for the 2026 Summer Intake is open from 9 am onwards in its (37) branches across the country until 30th June 2026.
However, by 5 pm the same day, the bank stopped accepting applications and put up a notice saying that scheme had been closed effective 2nd June following exhaustion of the funds.
It said the applications received would be processed on a first-come first-served basis.
There was soon a hue and cry, as many people asked why the loan window was closed when the original announcement had stated it would remain open until 30th June. All kinds of allegations started flying online.
In response to this, the government decided that the BoB will reopen the ESP Education Loan application window until 30 June 2026 as originally announced.
The government said all applications received within the stipulated timeline would be carefully assessed and prioritized based on genuine need, eligibility, and merit criteria.
It said it remains fully committed to providing the necessary support and funding arrangements to ensure the successful implementation and sustainability of the Education Loan Scheme.
The original ESP Education Fund allocation was a total of Nu 600 million (mn) to the bank.
The original plan was to allocate Nu 150 mn annually for 4 years. However, in the first intake in 2025 itself, the demand was so huge that the government told BoB not to limit the numbers.
The scheme was launched on 23rd July 2025 with a deadline till end of August for the 2025 summer applicants, and here, 457 applicants applied and got Nu 333.72 mn. A second announcement was made in January 2026, with the deadline till February, and here, 110 applied and got Nu 97.67 mn.
This meant Nu 431.39 mn had already been committed under the June 2025 and February 2026 intakes, leaving a balance of Nu 168.61 mn available for June 2026 summer intake.
In the earlier two intakes, pretty much all the applicants who applied and met the criteria got their loans.
However, the challenges occurred in the third intake, as there was only a limited fund of Nu 168.61 mn of which Nu 60 mn remained with the ESP Committee as a buffer, and so the BoB effectively had only Nu 108.61 mn with it.
On the other hand, word had spread of the previous applicants who got the loans, and so many had prepared to submit both online and in person.
When the loan was opened, the BoB received 253 loan applications from 9 am to 5 pm, worth Nu 266.08 mn which is well above the Nu 168.61 mn fund. The bank decided to close the loan and seek directions on what to do with the additional applicants of the first day.
The main misgiving with the loan window being closed was how so many applicants managed to apply on day one and obtain multiple documents so quickly, including PIT tax documents from the Department of Revenue and Customs.
An official said after the first two rounds, students and parents were well aware that the next round is in June 2026 though the specific date was not known. The official said parents and students kept following up with the banks and kept their documents ready, and once the loan was opened, there was rush. The form was on the website to download from last year itself.
The official said that based on the first come first served basis, the first 131 or so applicants who met the fund limit were entered on google sheets by around 3.30 pm, and after that even though the fund was exhausted the applications were received till 5 pm.
One suspicion was if a large group of people had their documents submitted in bulk before the opening hours, but the official said that it was made very clear that applications were not to be received before 9 am, and in fact the information for the loan opening the next day was hidden from bank staff with the email being sent only around 8 pm to branches at night before the loan opening day so that information stayed hidden till the official announcement.
There were applicants from the Digital Landing Platform too. The official said the huge rush is due to simple demand and supply economics.
The main question now is how the government will fund the ones exceeding the original Nu 600 mn allocation from the ESP which is already funding the fuel price support.
A senior official said that resources will be reallocated from the ESP and additional funding will be provided.
Given that 457 applicants applied and received Nu 333.72 mn in August 2025, the government anticipates the additional amount to be around this amount.
Prime Minister Dasho Tshering Tobgay said, “We will support those who meet the requirements, as it is meant for those coming from humble families.”
