Arya News - The scheme is specifically designed to support academically sounf students from families without business income and with an annual household income below Nu 500,000.
THIMPHU – The government yesterday launched a new concessional education loan scheme under the economic stimulus programme (ESP), aiming to provide financial aid for Class XII graduates from disadvantaged economic backgrounds seeking to pursue tertiary education or vocational courses.
Loan applications are now available through the Bank of Bhutan Limited (BoBL).
This initiative allows eligible students to apply for loans of up to Nu 1.5 million per student at a low interest rate of 4 percent.
The scheme is specifically designed to support academically sound students from families without business income and with an annual household income below Nu 500,000.
The loan will only be available to candidates under 25 years old who passed Class XII the preceding year, are not government scholarship recipients, and are pursuing a degree programme in Bhutan or India.
“Higher education must not be a privilege reserved for the wealthy; it should be a right accessible to every Bhutanese student,” an official from the Joint Technical Working Group of the Concessional Education Loan said. “This loan is designed specifically to support those from families without business income and with an annual household income below Nu 500,000.”
He added that the age limit of 25 was set because youth unemployment is highest in that demographic, aiming to intervene at this critical stage to help young people upskill and access better employment opportunities.
Students who began their courses in the 2025 semester are eligible, though those who started in 2024 are not. Both fresh graduates and past Class XII graduates meeting these criteria can apply. The loan covers undergraduate and diploma programmes in Bhutan and India, including self-funded seats in Colleges within both countries.
Students pursuing vocational training under the Technical and Vocational Education and Training programme in India are also eligible, but vocational courses outside of India are excluded.
The budget allocated under the ESP programme is Nu 600 million.
Loan repayment begins one year after course completion, providing a grace period for graduates to secure employment.
However, officials cautioned that students must maintain satisfactory academic performance, as failure in any semester will result in ineligibility for further disbursements.
The BoBL will facilitate the loan process and disbursement, with monitoring mechanisms linked to academic performance and institutional verification.
Applicants will need to provide documents to verify family income and must apply before turning 25.
The loan is open to those who have already secured admission for 2025 and those planning to pursue education after 2025.
The initiative’s detailed guidelines will be implemented by a Joint Technical Working Group comprising representatives from Royal University of Bhutan, Ministry of Education and Skills Development, Khesar Gyalpo University of Medical Sciences of Bhutan, private colleges and institutes, Department of Revenue and Customs, Department of Civil Registration and Census, BoBL, and ESP Secretariat.