ESP Education Loan Scheme

1. DESCRIPTION

The objective of this loan is to provide concessional education loans:

• To mitigate youth unemployment by offering opportunities for youths to pursue further education or skills training instead of entering a labor market during periods of high unemployment.
• To develop a skilled workforce by enabling our youth to pursue vocational courses in India through accessible financing

2. ELIGIBILITY CRITERIA

1. Must be a resident Bhutanese citizen
2. Aged below 25 years at the time of application.
3. Class XII passed students with confirmed admission/offer letter/confirmation of enrollment – for Undergraduate degree in Bhutan and India, and TVET courses in India.
4. Preference shall be given to Gyalsups.
5. Shall be full time courses to attend in-person
6. Full scholarship recipients are ineligible
7. Annual Household Taxable Income (Parents) below Nu. 500,000. For salaried parents verified through PIT (Total Adjusted Gross Income) and for business through BIT (Net Taxable Income).
8. The loan account will be opened in the student’s name under the guardianship of the parents.
9. The parent/sibling/relative/guardian should stand as a guarantor.
10. Clean CIB report (parent/sibling/relative/guardian) – No requirement of CIB for applicant under the age of 18 years.

3. INTEREST RATE: 4% per annum (fixed interest)

4. LOAN LIMIT: Maximum of Nu. 1,500,000.00 (One Million Five Hundred Thousand only)

5. TENURE: 10 years (excluding gestation period)

6. LTI/LTV: Not Applicable

7. COLLATERAL REQUIREMENT: Not Applicable

8. REPAYMENT

• The loan repayment should commence after the completion of the gestation period.
• In the event of non-completion, withdrawal or discontinuation of course or studies, the repayment should commence immediately after the notification to the Bank.

9. GESTATION PERIOD

• Course duration plus 1 year (to search for jobs, no mandatory repayment required during this period)
• No extension of the gestation period will be granted for delayed course completion caused by failures or repetitions.

10. APPLICATION PROCESS

• The application form is made accessible through the Digital Lending Platform (DLP) to ensure broader accessibility and convenience for all eligible applicants. DLP link: https://bobloan.bob.bt/dlp/#/dashboard
• Loans can be processed at any branch, based on the applicant’s convenience.

11. APPLICATION DEADLINE

This scheme will have two application cycles per year:

• January to February for spring semester
• June to July for fall semester (Extended until August for 2025 intake)

This bi-annual schedule allows for flexibility and accommodates different academic calendars and enrolment periods.

12. CHECKLIST

1. Application Form (Digital Lending Platform): A standardized form to collect necessary applicant information.
2. Citizenship Identity Card of the applicant.
3. Citizenship Identity Cards of the applicant’s parents/sibling/relative/legal guardians (whichever applicable).
4. Household Information (Family Tree)/ a Relationship Certificate, if the relationship cannot be established through the Household Information.
5. Official documentation from the colleges and institutes confirming the applicant’s admission or enrolment.
6. Total Adjusted Gross Income for PIT and Net Taxable Income for BIT (only for accounts filers) for the most recent year, certified by the Department of Revenue and Customs.
7. Receipt or invoice indicating the fee structure to be covered by the loan, if it is not mentioned in the offer letter/confirmation of enrolment.
8. Certificate for applicants who have completed the Gyalsung program.