BLA Loan Products
FAQ on BLA Loan Products
Any Bhutanese residing overseas, with sufficient repayment capacity, are eligible to apply for BLA loans.
Applicants can email the duly filled forms, along with other required documents to [email protected]
You can download them from our website at www.bob.bt
Applicants or guarantors (residing outside Bhutan) can assign Power of Attorney (POA) to family members who are residing in Bhutan, authorizing them to execute the documents on their behalf.
Original documents should be mailed to CRM, Loan Section at Thimphu Main Branch, Bank of Bhutan.
The loan repayment should be routed through BLA FC account.
Multiple income sources of the applicant will be considered, including the income of immediate family members (spouse and children)
For permanent resident/green card holder, 50% of the monthly net income, and for temporary residents, 20% of the monthly net income will be considered for loan repayment.
HOUSING LOAN
You can avail housing loan for following purposes:
The current floating interest rate for non-commercial housing is 8.13% per annum, and for commercial housing, it is 8.93% per annum.
The maximum loan tenure is 30 years (360 months) excluding gestation period.
The maximum allowed gestation is 3 years (36 months).
The maximum limit for non-commercial housing is Nu. 10.00 million, while there is no ceiling for commercial housing.
No, BLA housing loan is exclusively available for the construction, renovation and purchase of properties within Bhutan.
The loan amount will not be disbursed in a lump sum; instead, it will be disbursed in tranches based on the progress of the construction. For purchase of property, it will be disbursed to seller’s CASA account.
The bank may consider the sale deed value when calculating the loan amount, but the insurance value of the property must, at a minimum, equal the loan amount. When purchasing a home or building, it is advisable to confirm with the insurance company the maximum coverage limit for the property.
EDUCATION LOAN
Bhutanese individuals living abroad can avail education loan for advancing their studies or covering the educational costs of family members and relatives both within and outside Bhutan.
The current floating interest rate is 8.13% per annum.
The maximum loan tenure is 10 years (120 months) including gestation period.
The maximum allowed gestation is 24 months.
The maximum limit of Nu. 10.00 million for students studying in India or abroad and Nu. 1.50 million for students studying in Bhutan.
70% of the value of the collateral or 90% of the cash collateral but not exceeding the maximum ceiling of Nu. 10.00 million.
Reimbursement of already incurred expenses is not permitted. Education loan will be given for pending tuition fees and will be remitted directly to the institution. Living expenses will be disbursed to the CASA account of the applicant.
Except for the living expenses, tuition fees will be remitted directly to institution’s account.
Yes, as long as an individual has sufficient collateral and repayment capacity. However, the applicant will have to submit us the proof of relationship.
Yes, despite having adequate repayment capacity, individuals are required to provide collateral security.
The collateral offered should be within the areas falling under the bank’s rate. Rural land not included in the Bank’s rate will not be accepted.
Interest accrued during the gestation period can be set aside from the approved limit, paid monthly, or settled in a lump sum at the end of the gestation period.
SHARE LOAN
The current floating interest rate is 10.77% per annum.
The maximum loan tenure is 10 years (120 months) for permanent resident/green card holder and 5 years (60 months) for temporary visa holder.
There is no gestation period; repayment must commence immediately.
Maximum of 50% of the market price.
The share loan is exclusively offered for the purchase of share of domestic companies listed with RSEBL with minimum 5 years of operations.
No, individuals cannot obtain a share loan by pledging existing shares. It is solely for the acquisition of new shares.
Collateral security is not required. However, the shares acquired will be pledged with the bank.
BUSINESS LOAN
Bhutanese individuals living abroad who wish to establish a business in Bhutan can apply for a business loan.
The interest rate is different depending on the type of business. Please visit our website www.bob.bt for interest details.
The maximum loan tenure is 20 years (120 months) excluding gestation period.
The maximum allowed gestation is 5 years (60 months)
Maximum of 75% of the project cost.
Individuals applying for a business loan must possess a valid business license issued by MoEA.
The business can be managed by a partner or family member(s) residing in Bhutan, whose details should be included in the DPR.