· New education loan scheme supports underprivileged students pursuing higher or vocational education.
· Open to Class XII graduates under 25 with household income below Nu 500,000 and no business income.
· Includes undergraduate, diploma, and TVET programmes; repayment starts one year after course completion.
In a move to make higher education more accessible, the Royal Government of Bhutan has introduced a concessional education loan scheme under the Economic Stimulus Programme (ESP). The initiative aims to support Class XII graduates from economically disadvantaged backgrounds in pursuing tertiary education or vocational training.
Loan applications are now open through the Bank of Bhutan Limited (BoBL). Eligible students can avail loans of up to Nu 1.5 million per person at a low interest rate of just 4 percent.
The scheme is targeted specifically at academically capable students from families with no business income and an annual household income below Nu 500,000. To qualify, applicants must be under 25 years of age, should have passed Class XII in the previous academic year, must not be recipients of government scholarships, and must have secured admission into undergraduate or diploma programmes either in Bhutan or India.
“This scheme ensures that higher education becomes a right, not a privilege,” stated an official from the Joint Technical Working Group overseeing the initiative. “It is meant for students who have the academic merit but lack the financial means, especially those from households without business income.”
The official further noted that the age limit was intentionally set at 25, as youth unemployment is highest in this age group. The loan is designed to empower these young individuals with upskilling opportunities to improve their employment prospects.
Students who commence their education in the 2025 academic year are eligible to apply. Those who began courses in 2024 do not qualify. The loan covers both fresh and past Class XII graduates who meet the criteria. It is applicable to self-financed seats in recognized colleges and institutions in both Bhutan and India.
Students pursuing vocational education under the Technical and Vocational Education and Training (TVET) programme in India are also eligible. However, vocational courses outside India are not covered under this scheme.
The government has earmarked Nu 600 million for this initiative under the ESP. Loan repayment will begin one year after course completion, providing graduates a grace period to find employment.
Officials emphasized the importance of maintaining satisfactory academic progress. Any failure during the course of study will result in a halt of further disbursements. The BoBL will manage the loan disbursal process and will work closely with academic institutions to monitor student performance and verify enrolment.
Applicants must submit documentation verifying family income and ensure they apply before turning 25. The scheme is open to students already admitted for the 2025 session, as well as those planning to begin their studies later.
The scheme will be administered by a Joint Technical Working Group comprising representatives from the Royal University of Bhutan, Ministry of Education and Skills Development, Khesar Gyalpo University of Medical Sciences of Bhutan, private colleges and institutes, the Department of Revenue and Customs, the Department of Civil Registration and Census, BoBL, and the ESP Secretariat.
