I am happy to note the finance minister’s announcement that housing and vehicle loans will be opened up soon. I think this a progressive step and the government needs to be congratulated. However, I also have few issues on the loans and the conditions on which they are being opened up.
First I am not comfortable with a Nu 20 mn limit in commercial houses as the real cost of making such buildings is around Nu 40 mn these days. This will create a housing shortage in the future as many commercial builders sell flats while others rent them out.
Another absurd guideline I read is that people wanting to build their own homes will only get Nu 3 mn and that too one loan per family for a lifetime. The Nu 3 mn amount is totally inadequate as the real cost of building a family home especially in Phuntsholing would be around Nu 5 to Nu 6 mn even by conservative standards. In fact cars these days cost more than the Nu 3 mn proposed.
In fact many people in border areas like Phuntsholing are forced to stay across the border due to lack of housing facilities.
I will hope that the government will convince RMA to make the guidelines and rules more flexible so that it reflects the ground reality the ordinary people can benefit.