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Home Economic Stimulus Plan (ESP)

Economic Stimulus Plan (ESP)

What is the Economic Stimulus Program (ESP)?

ESP is a government initiative launched in 2024 to help the economy recover from the impacts of the COVID-19 pandemic, with a focus on domestic production and employment generation.

What are the main objectives of the ESP?

The ESP aims to boost domestic production, improve foreign currency reserves, generate employment, and promote new businesses.

How can I apply for an ESP Loan?

You can apply by visiting the nearest BOBL branch with a completed application form.

Where can I get the application form?

You can get the application form from the nearest branch office or download it from the BOBL website:

What are the documents required for applying for an ESP Loan?

You can get the document checklist from the nearest branch office or download it from the BOBL website:

What are the two funding windows under the ESP?
  • Window 1: Concessional Credit Line (CCL) – Supports new businesses and expansion of existing businesses in targeted sectors.
  • Window 2: Reinvigoration Fund (RGF) – Aims to help distressed borrowers with businesses that have the potential to recover from setbacks caused by COVID-19 or other external factors.

Who is eligible for the Concessional Credit Line (CCL)?

Individuals over 18 years, businesses with a valid trade license, new and existing borrowers, and those with a clean CIB report are eligible.

What is the eligibility for the Reinvigoration Fund (RGF)?

Existing distressed borrowers or those showing potential for revival are eligible, as long as they are not classified as willful defaulters.

Who is considered as a distressed borrower?

Distressed borrowers include viable businesses and projects that are unable to complete, operate, or take off. This also covers loans classified as NPL (Non-Performing Loans), deferred, charged-off, or under gestation, provided they have the potential for revival.

What sectors are targeted by the ESP?
  • Window 1: The ESP targets Agriculture and Livestock, as well as Production and Manufacturing for small and medium-scale businesses.
  • Window 2: It focuses on Business Reinvigoration, supporting distressed businesses of any size that have the potential to recover.

What is the maximum loan amount for each sector?

Agriculture & Livestock: Up to Nu. 1 million.

Production & Manufacturing:

i. Small Scale: Up to Nu. 10 million.

ii. Medium Scale: Between Nu. 10 million and Nu. 100 million.

Business Reinvigoration: There is no fixed investment limit for this sector.

What is the interest subsidy provided under the ESP?
  • For the CCL, the interest rate is 4% per annum until 30th June 2034.
  • For the RGF, there is a 4% per annum subsidy for up to 3 years. Borrowers must bear the difference between the subsidized rate and the existing rate of PFIs.

What are the security requirements for loans under the ESP?
  • For CCL: Project assets and stocks must be fully insured and may be used as collateral.
  • For RGF: Existing assets or additional collateral as required by PFIs norms.

How will the loan repayment work under the ESP?

Repayment starts after the gestation period or immediately, depending on the type of loan. The terms and conditions vary based on the project and financial institution’s norms.

If a Window 2 RGF loan under the ESP slips into NPL, do we need to repay the interest subsidy?

Yes, the interest subsidy will be recovered from the borrower’s loan account.

Can Businesses apply for both the modality under Window 2?

Borrowers can apply for either Modality 1 or Modality 2, but not both.

What is the maximum tenure for an ESP Loan?
  • Window 1 (Agriculture and Livestock, and Production and Manufacturing):  The maximum tenure is until 30th June 2034.
  • Window 2(Reinvigoration Fund): The tenure depends on the specific sector.

What is the deadline for submitting applications for the ESP?

Applications must be submitted to the respective PFIs on or before December 31, 2024.

How long will it take to process an ESP Loan?

The time it takes to process an ESP loan depends on:

  • Window 1 (Agriculture and Livestock): It will take approximately 1 week to process.
  • Window 1 (Production and Manufacturing): The loan will be processed within 1 month.
  • Window 2 (Reinvigoration Fund): The loan will be processed within 1 month.