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Group lending starts

9 November 2009

Bhutan Chamber of Commerce and Industry (BCCI), for the first time, will serve as a guarantor for those who avail the group lending scheme of Bhutan Development Finance Corporation Limited (BDFCL).
A loan amount to the maximum ceiling of Nu 100,000 to a group member will be given at 10 percent interest a year for three years. A maximum of Nu 30 million will be loaned out to the micro businesses nationwide.
A memorandum of understanding was signed between the BDFC and the BCCI last week to promote and assist the rural micro enterprises which are registered with the chamber to access credit through small loans under the group guarantee lending saving scheme.
Anyone that holds a valid business licence or has a registration certificate can apply for this scheme. The screening of the applicants will be done by the BCCI.
The rural people, especially the retirees, face difficulties in financing small businesses and most do not have security. The banks are stringent with collateral, said the president of BCCI, Topgyal Dorji. This group lending scheme was, therefore, proposed to the BDFCL, which was accepted.
The group should have three to five members aged from 18 to 65 who will be jointly responsible for the full repayment of the principal, interest, penalty, if any, and savings of the delinquent members of the group.
The mode of repayment will depend on the type of business undertaking but should not exceed six months, said the general manager of credit at BDFCL, Karma Choden.

Bhutan Chamber of Commerce and Industry (BCCI), for the first time, will serve as a guarantor for those who avail the group lending scheme of Bhutan Development Finance Corporation Limited (BDFCL).

A loan amount to the maximum ceiling of Nu 100,000 to a group member will be given at 10 percent interest a year for three years. A maximum of Nu 30 million will be loaned out to the micro businesses nationwide.

A memorandum of understanding was signed between the BDFC and the BCCI last week to promote and assist the rural micro enterprises which are registered with the chamber to access credit through small loans under the group guarantee lending saving scheme.

Anyone that holds a valid business licence or has a registration certificate can apply for this scheme. The screening of the applicants will be done by the BCCI.

The rural people, especially the retirees, face difficulties in financing small businesses and most do not have security. The banks are stringent with collateral, said the president of BCCI, Topgyal Dorji. This group lending scheme was, therefore, proposed to the BDFCL, which was accepted.

The group should have three to five members aged from 18 to 65 who will be jointly responsible for the full repayment of the principal, interest, penalty, if any, and savings of the delinquent members of the group.

The mode of repayment will depend on the type of business undertaking but should not exceed six months, said the general manager of credit at BDFCL, Karma Choden.

By Sonam Pelden

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Posted by Bhutan Observer · Filed Under About Town, Community 

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