In a move poised to broaden access to higher education, the Royal Government has announced the imminent launch of a Nu 1 billion Education and Training Loan Scheme, slated to open to applicants this July. The initiative, a key commitment made during last year’s election campaign, is designed to support more than 500 deserving students each year by providing affordable, merit-based financing for degree programmes and technical training.
Who Can Apply
Under the new guidelines, Bhutanese nationals aged 25 or younger whose parents earn less than Nu 500,000 annually will be eligible for loans of up to Nu 1 million without the need for collateral. Applicants securing admission to recognised institutions—whether in Bhutan or in India—on a merit basis will qualify for financing at a concessional interest rate of just four per cent. Unlike the scheme’s initial conception, support is now open to all eligible students, rather than being limited to one youth per household.
A Shift in Focus
Originally, the government had pledged to assist a single student from each household in which no member had previously studied or worked abroad. However, Industry, Commerce and Employment Minister Namgyal Dorji explained that the revised scheme takes a more inclusive and sustainable approach. “The whole objective is to support education and training of our youth for degree programmes and technical training,” he stated. “If we simply tick off a pledge, it becomes a one-time event. Instead, we need a system with a long-term vision that consistently invests in our human capital.”
Implementation and Oversight
While the Bhutan Development Bank (BDB) is likely to administer the programme—subject to finalisation under the Economic Stimulus Programme framework—other financial institutions are also invited to participate. Once a student’s loan is approved, the managing bank will disburse tuition fees directly to the selected colleges or technical institutes. Any remaining funds earmarked for student living expenses will be issued as a stipend, the amount of which will be determined based on course and institutional requirements.
Sustainability and Expansion
Minister Dorji emphasised that, should the scheme demonstrate positive outcomes, the government is prepared to inject additional funds in subsequent years. “This is not a one-time initiative,” he remarked. “We want to build a sustainable system that empowers Bhutanese youth and aligns with our national development priorities.”
By enabling talented students from modest backgrounds to pursue higher education without the burden of prohibitive costs, the Education and Training Loan Scheme represents a significant step toward cultivating a skilled workforce equipped to contribute to Bhutan’s socio-economic growth. As July approaches, eligible applicants and financial institutions alike are gearing up to participate in what promises to be a transformative programme for the nation’s youth.
