The Bhutanese Leading the way.
T-bank has resumed its education loan for students who are opting to study outside from 4th March. Under Royal Monetary Authority’s new education loan scheme, T-Bank will be once again sanctioning special education loans similar to that of other banks.
T-bank had to suspend its education loan as it had crossed the exposure limit back in October 2022. Almost after 5 months, the bank will be resuming its education loan for students who are looking to go abroad for their studies.
Similar to the loan schemes provided by Bank of Bhutan (BoB), Bhutan National Bank (BNB), and Druk PNB, the loan offered by T-bank also offers two loan types, secured and unsecured.
As with the two types of loan for the new education loan scheme, secured and unsecured type, T-bank will be offering maximum of Nu. 5 million for secured and Nu. 3.5 million for unsecured.
The interest rate is at 10.25% per annum for secured and 11.25% for unsecured.
Three month’s interest amount should be deposited upfront at the time of availing the loans for both loan types and the loan tenure is for 5 years with a gestation period for 3 months.
For the secured loan type, the age of the applicant should be 18 years and above whereas for the unsecured loan type, the age is limited from 18-35 years old.
However, it is quite different from loan offered by other commercial banks. T-bank will be refunding remaining interest rates. Loan can be closed off after a minimum period of 1 month and it will refund the remaining interest amount deposited upfront.
The eligible countries for this loan scheme include Australia, Canada, United Kingdom, and United States.
To avail the secured loan type, one should have collaterals or mortgages that is 80% the value of the loan whereas for the unsecured loan type, there is no collaterals or mortgages.
For people seeking loans, the necessary paperwork is properly completed loan application form, signed undertaking letter, CID Copies of the applicant’s copy and two passport-sized pictures, an offer letter from the institute, college, or university, a cost breakdown for the VISA need, a copy of the marriage certificate (for those who are married), and the applicant’s and the spouse’s family tree are also required. The only additional information required for customers looking for secured loans is a promise of unencumbered assets and an agreement from the asset’s owner to use it as collateral for the loan.
A CIB report must be generated for each household member in order to ensure that none of them has an NPL and that none of them has a net annual taxable income exceeding Nu.1 million. Additionally, the most recent tax returns from the DRC must be submitted for each household member if one chooses to apply for an unsecured loan without collateral.
There must be land ownership letters for every household member (from NLC) specifying the location, area, type, and PAVA value of the land to confirm that none of the household members have any business overdraft facilities or limits of more than Nu. 1 million, which must be ascertained from the CIB report.
