The government is working to address civil and public servants’ concern on increasing their personal loan ceiling, according to Finance Minister Namgay Tshering.

Lyonpo responded to Drujeygang-Tseza’s Member of Parliament (MP), Jurmi Wangchuk’s question on the possibility of consulting with financial institutions to increase the loan ceiling, as civil and public servants avail only Nu 500,000 with their salary. 

The MP said the loan amount today has minimum benefits on their livelihoods or planned activities. “It’s essential to look after the welfare of civil and public servants, as they have to prepare for their retirement. It would be better to give loans based on the net salary.” 

Lyonpo Namgay Tshering said the ministry is discussing with financial institutions, including Royal Monetary Authority to resolve the issue. “We are also proposing an education loan for children.”

He said the National Pension and Provident Fund (NPPF) would start a Credit Union Bank for all the members to avail loan. “There are more than 65,000 registered members of NPPF today.”

He also said the finance Ministry is  also discussing about residential house ownership loan.

By Thinley Namgay 

Edited by Tashi Dema