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  • Frequently Asked Questions

    How much will the government Gurantee?

    The Guarantee will be limited to debt financing of the project. NCGS coverage will not exceed Nu. 30 million.

    What is guarantee period?

    The guarantee period will not exceed a maximum of three years.

    Who will be eligible for NCGS?

    All aspiring Bhutanese desiring to start new projects or upgrade existing projects, under the category of Cottage and Small, Medium and Large industries.

    What kind of businesses are eligible for the Scheme?

    This Scheme is available to eligible businesses of large, medium and CSI, including primary producer, which falls under the category of the productive sector. The definition of productive sectors and full details of the eligibility criteria are available here.

    What is National Credit Guarantee Support Facility (NCGSF)?

    NCGSF is one-stop shop for NCGS related support and information.

    What is the interest rate applicable for NCGS?

    The interest rates will be applicable as follows:

    • Cottage & Small industries:

               7 % during gestation period; and

               8 % after commercial operation.

    • Medium & Large industries:

              8.75% during gestation period; and

              9.75 % after commercial operation.

    How can businesses apply for the Scheme?

    The NCGS is accessible by direct application to participating Banks. The Banks will start receiving applications from October 23, 2020.

    Which Banks are participating in the Scheme?

    The Bank of Bhutan, Bhutan Development Bank and National CSI Development Bank will participate in the NCGS from the launch.

    What is the Debt to Equity Ratio to avail loans under NCGS?

    The Debt to Equity Ratio under the NCGS will be 90:10, which is significantly lower than the existing 75:25. However, for start-ups under CSI category, equity requirement will be exempted.

    What kind of support will the NCGSF provide?

    In addition to facilitating the guarantee approval, the NCGSF will support project development guidance; facilitate clearances and approval for business establishment; and smooth implementation of the projects under the NCGS.

    What is National Credit Guarantee Scheme (NCGS)?

    The National Credit Guarantee Scheme (NCGS) is a counter cyclical policy measure during the COVID-19 situation to stimulate investments through enhanced access to finance. The Government will guarantee a portion of the loan under the scheme.