Loan to the Priority Sector (PSL)
Purpose
Priority Sector Lending (PSL) is provided to the cottage and small industries (CSI), that has been identified as a priority sector, for targeted credit support and for increased coordination and efficiency in the delivery of government support schemes and incentives. PSL loan are based on insurance of the proposed project assets.
Eligiblity
Farmers
Unemployed Youth and Anyone Engaging in PSL activity
Applicants should be Bhutanese citizen
Applicants should be between the age group of 18-60 years at the time of borrowing
Applicants should have a clean CIB record
The Business activities should be within the framework as per PSL guidelines
Quantum
Individuals – Loan limit of Nu. 0.5 million (max. investment size) for primary production under Agricultural CSI
Integrated Activity – Nu.10 million
Groups / Cooperatives – Nu. 10 million (max. investment size)
Registered with DAMC/Forestry (Agri)
Partnership businesses (Non-Agri)
Incorporated Companies – Nu. 10 million (max. investment size)
The loan limits for agriculture CSI as well as for non-agriculture CSI will be based on the PSL guidelines and will be subject to change as and when PSL guidelines are revised.
Tenor
| Agriculture CSI (Processing & Packaging, Marketing & Sales) | Maximum of 10 Years (excluding the gestation period) as per the business activity. |
| Agriculture CSI (Others) | Maximum of 5 years (excluding the gestation period) |
| Non-Agriculture CSI (Production/Manufacturing and Services) | Maximum of 15 years (excluding the gestation period) as per the business activity |
Interest Rate
Agricultural CSI
Non-agricultural CSI & value addition in Agricultural CSI
Required Documents
SL Application form duly filled in and signed on all the pages (Full signature).
For loan limit between 0.5 million to 1.0 million – A brief business proposal template duly filled in where applicable.
For loan limit between 1.0 million to 10.0 million – A detailed business proposal with the financial projections.
A Copy of valid Citizenship Identity (CID) of the applicant(s) and the Chairman, office bearer and treasurer if applicable.
Two recent Pass Port size photograph of the applicant(s) or the Chairman, office bearer and treasurer as applicable.
A copy of security clearance of the applicant(s) or the Chairman, office bearer and treasurer as applicable.
Ownership certificate(s) of the plot where PSL activity is taking place if applicable.
For land under joint or co-ownership, a consent letter from the joint owner or co-owner witnessed by Gup of the village (if applicable).
For family owned land, family (household) register issued by Department of Civil Registration and Census, MoHCA and NOC from family members (18 years and above) (if applicable).
For private land under lease, a Sale Deed agreement and a copy of CID of the owner of the land (if applicable).
Approved drawing plan of the building or construction and a copy of approval letter for construction from concerned authority (if applicable).
Off-take agreements if applicable.
A copy of group resolution or Articles of Association – in-case of partnership/cooperative/groups/company.