Standard Education Loan

Purpose

This loan is for aspiring students looking for financial assistance to pursue higher education within or outside Bhutan.

The loan is meant to cover the following expenses where applicable:

  • Tuition fee
  • Admission fees
  • Accommodation
  • Living & travel expenses
  • Other expenses

Eligibility

  • Student must be a Bhutanese individual.
  • The applicant must be a Bhutanese individual above 18 years of age.
  • If the course is taking place within Bhutan, the applicant should be the student or legal guardian or a sponsor who are relatives within the family tree.
  • If the course is taking place outside of Bhutan, the applicant should be the Legal guardian or a sponsor who are relatives within the family tree.
  • The student should be the co-applicant if the primary applicant is an individual other than the student.
  • The purpose of the loan is to meet the expenses required for pursuing higher studies (diploma/undergraduate/postgraduate).
  • The student should have obtained an admission letter/offer letter/eCOE from the respective college, university, or institute.

Basis for financing

  • Course fee/admission fee as per fee structure from the university.
  • Living expense to a maximum of USD 2,400 per month (not applicable to domestic students) for a maximum of 6 months.
  • One-time travel expense of USD 1,000 (Not applicable to domestic students).
  • The applicable currency will be converted to Ngultrum applying prevailing exchange rate.
  • One-time settlement expenses USD 1,000.
  • Overseas student health coverage.
  • The living expense is as per Foreign Exchange Operational Guideline 2018 (RMA).

Loan Amount & Collateral Requirement

Quantum of loan will be as follows but not exceeding 100% of the total educational expenses.
Place of study Collateral Requirement Maximum Amount Other Conditions
Bhutan Salary-based  Nu. 800,000

-Loan Care Insurance (optional)

– The employee loan eligibility criteria shall apply. However, unlike the employee loan, the maximum loan amount of Nu.800,000 shall apply irrespective of the years in service and the applicant under probation will not be eligible. Guarantor requirement and other conditions shall remain same.

Collateral-based 60% of collateral value not exceeding Nu.1,500,000

– Immovable property

– Third party guarantee accepted preferably from relatives/parents

Abroad Salary-based  Nu. 800,000

– Loan Care Insurance (Optional)

-The employee loan eligibility criteria shall apply. However, unlike the employee loan, the maximum loan amount of Nu.800,000 shall apply irrespective of the years in service and the applicant under probation will not be eligible. Guarantor requirement and other conditions shall remain same.

Collateral-based 60% of collateral value not exceeding Nu.5,000,000

– Immovable property

– Third party guarantee accepted preferably from relatives/parents

Loan Tenure

Maximum 7 years excluding moratorium period of 6 months.

Interest Rate

9% per annum fixed rate

Loan to Value

60% of the collateral value

Moratorium

The loan repayment may commence 6 months after the first disbursal. However, the borrower has the option of commencing repayment earlier or immediately upon disbursal.

Loan Disbursement Method

  • The final loan amount will be the total estimated expenses inclusive of tuition fees, overseas student health insurance, one-time travel expense, one-time settlement expense and living expense for 6 months.
  • Admission/course fees and OSHC shall be directly remitted to the institution/College/University’s account as per the requirement from the institution.
  • The estimated cost of travel, settlement, and the living expense for 6 months will be released to the applicant’s account.
  • If the tuition fee is already paid, it shall be considered for determining the quantum of the loan and the amount shall be disbursed directly to the applicant’s account upon submission of money receipt/invoice issued by the concerned Institute/College/University. However, the tuition fee reimbursement shall not be considered for students who have completed the course.
  • In case the student is already pursuing study, the living expense will be paid up to a maximum of 6 months.

Repayment

  • Repayment source shall be from salary and other reliable income source.
  • Repayment capacity assessment should be done following the existing process for other loans based on the repayment source.
  • The repayment frequency shall be monthly.
  • LTI-
    • 50% of net disposable income if income source is from salary
    • 70% of the net income if the income is from other sources
    • LTI shall be calculated on the total sanctioned amount

 

Required Documents

  • Duly filled in loan application form signed by the applicant
  • Duly filled in student details form singed by the student.
  • Copy of valid Citizenship Identity (CID) of the applicant and the student.
  • Latest passport sized photos of the student and the applicant (2 nos).
  • Copy of admission letter/offer letter from the institute/college/university.
  • Cost breakdown of the financing requirement including course fee structure.
  • Copy of ownership certificate of the property to be pledged as collateral.
  • Copy of valid insurance policy of the property (if applicable).
  • Consent letter from the property owner.
  • Latest passport sized photo of the property owner.
  • Copy of valid Citizenship Identity (CID) of the property owner.
  • Proof of repayment source (business license, profit & loss statement, rental, salary slip etc).
  • Salary undertaking.
  • Relationship certificate if the applicant is other than the student.
TypeFile NameDate ModifiedSize

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Standard Edu Loan Guarantor Form 9:49 pm 01/12/2023162.3k

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Standard Edu Loan Student Details Form 11:32 am 01/13/2023131k

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Standard Edu Loan Application Form Collateral Based 11:33 am 01/13/2023163.8k

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Standard Edu Loan Application Form Salary Based 11:33 am 01/13/2023154.3k