The National Credit Guarantee Scheme has seen more than 300 applicants for the scheme in various banks out of which 81 were approved consisting of 16 females and 65 males with different business ideas.
As of 12th May, the total approved loans amounts to Nu 274.5mn for 29 approved projects from Production and Manufacturing (P&M), 30 from the Agricultural sector and 22 from Service sector from 15 different Dzongkhangs.
Director of NCGS, Sonam Penjore said that the applications are received by the banks and after accessing the proposals the viable proposals are forwarded to NCGS for approval. Since people have insights of the scheme more eligible proposals are received resulting in increase in the number of approved proposals, he said.
Stringent monitoring is done by the NCGS after the dispersal of budget. The director said that they call the entrepreneurs every week and make a visit once a month depending on the progress. “Even if we have to stay in quarantine facility we have to go and monitor their progress,” said the director.
Bank of Bhutan has approved 43 applicants, 16 applicants were approved by Bhutan Development Bank Limited and 22 applicants by National CSI Development bank.
The Director said that during the first batch there were only 17% approval rates but it has improved drastically to 74% which is a clear picture of positive change in the business ideas from the applicants.
“Increasing numbers of serious proposals have been received as people are thinking in a wide range from a productive perspective and submitting serious proposals,” said the director.
Rohit Upreti, 27 years old a beneficiary of NCGS and a founder of E-Commerce (one click shop) said that he and the other founders of his business noticed the room for trading in Bhutan and because the trading methods in Bhutan are still backward Rohit said that the idea of bringing E-Commerce in Bhutan then emerged.
He added that he tried to expand his ideas and export on his own but it did not workout so with the help of NCGS he is expanding the business to export with full trust on the scheme’s safety and security.
Rohit has 8 employees at the moment. He said that since his budget is for Nu 10mn he needs to pay only 7% during the gestation period and 8% thereafter likewise the interest rate varies depending on the budget required by the applicants.
Another beneficiary of NCGS, Dawa Selden, 31 years old with unique production idea of baby food said that since Bhutanese children are mostly fed on unplanned diet she realized to come up with an organic instant cereal and readymade foods for infants which is good for the baby’s brain development and physical growth.
She said that her business require Nu. 1.9mn out of which Nu. 1.7mn is being supported by NCGS and she has to pay the interest rate of about 8.5%.
Dawa said that her utmost inspiration to do something new for the country has come from His Majesty’s trust towards the youths.