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FAQ

Member Home/Housing Loan

1. What is the purpose of Member Home/Housing Loan Scheme?

The loan aims at financing construction & repairs of house/building and purchase of flat. Â

2. Who can avail Loans?

Current members who have contributed for at least 1 year to the National Pension and Provident Fund Plan.

 3. How much can I borrow?

The maximum loan amount will depend on the cost estimate of the house/building/flat, repayment capacity and RMA's guideline on Home and Commercial Housing Loan.

4. What interest rates are charged on the loan?

5. For how long can I borrow?

Loan can be availed for a maximum period of 20 years.

6. Where can I apply for the Loan?

At present, loans can be applied at Head Office, Thimphu only.

7. What documents are required to apply for the loan?

A checklist for document required can be found in the first page of loan application form, please click here

8. How long will it take to process the loan?

7 working days, provided all required documents are complete.

9. How can I repay?

10. How can I check my loan balance?

Please register into our e-services to view your loan statement.

11. What are the tax benefits on Housing Loan?

The amount of interest paid on the loan is tax exempted if the loan is sanctioned in the name of property owner.

Member Education Loan

1. What is the purpose of Education Loan Scheme?

The Loan aims at financing member’s self-education as well as education of their children and spouse.

2. Who can avail Loans?

Current members who have contributed for at least 1 year to the National Pension and Provident Fund Plan.

3. How much can I borrow?

  • For studies within Bhutan, the maximum loan amount is Nu. 500,000/- per child (limited to 3 children)
  • For studies abroad, the maximum loan amount is Nu. 1,500,000/- per child (limited to 3 children)

However, the borrower must have sufficient Provident Fund balance, collateral security and repayment capacity.

4. Collateral

  • Upto Nu. 500,000/- Provident Fund balance with option to insure under Loan Care Insurance
  • More than Nu. 500,000/- PF balance and fixed assets

5. What interest rates are charged on the loan?

Different interest rates are charged depending on the loan repayment term.

6. For how long can I borrow?

Loan can be availed for a maximum period of 15 years or retirement age whichever is earlier.

7. Where can I apply for the Loan?

Loan can be applied at the Head Office, Thimphu or at NPPF’s Regional Offices located at Phuntsholing, Samdrup Jongkhar, Mongar and Gelephu.

8. What documents are required to apply for this loan?

A checklist for required document can be found in the first page of loan application form which is available in our website, please click here.

9. How long will it take to process the loan?

5 working days, provided all required documents are complete.

10. How can I repay?

The loan installment is deducted from the salary and deposited into the NPPF account maintained in Bank of Bhutan and its branches by the respective borrower’s parent Department.

10. How can I check my loan balance?

Please register into our e-services to view your loan statement.

New Members Loan Scheme

1. What is the purpose of New Member Loan Scheme?

The loan aims at helping members to settle and establish themselves at the start of member's career.

2. Who can avail Loans?

All members who contribute to National Pension and Provident Fund Plan.

3. How much can I borrow?

The maximum loan amount is Nu. 500,000/-. The capacity to pay back will be assessed.

4. What interest rates are charged on the loan?

9.50% p.a.

5. For how long can I borrow?

Loan can be availed for a maximum period of 5 years.

6. Collateral

Third party guarantee by a NPPF member or covered by Loan Care Insurance

7. Where can I apply for the Loan?

Loan can be applied at the Head Office, Thimphu or at NPPF’s Regional Offices located at Phuntsholing, Samdrup Jongkhar, Mongar and Gelephu.

8. What documents are required to apply for the loan?

A checklist for document required can be found in the first page of loan application form, please click here

9. How long will it take to process the loan?

5 working days, provided all required documents are complete.

10. How can I repay?

The loan installment is deducted from the salary and deposited into NPPF account maintained with Bank of Bhutan and its branches by the respective borrower's parent Department.

10. How can I check my loan balance?

Please register into our e-services to view your loan statement.

Student Loan Scheme

1. What is the purpose of Student Loan Scheme?

The loan aims at providing financial support to students to pursue higher education.

2. Who can avail Loans?

Loan can be availed by Bhutanese citizens who wish to pursue higher education including vocational training.

3. What are the eligibility criteria?

  • Student must have secured a minimum of 55% aggregate marks in last qualifying examination.
  • Must have secured admission in College/Institute/University recognized by the Ministry of Education.

4. Which courses are financed by the Student Loan?

Commerce, Economics, Accounts and Finance, Science, Mass Media/Journalism, Professional Courses and Vocational trainings.

5. What interest rates are charged on the loan?

8% p.a. during study period and 9% p.a. thereafter.

 6. How much can I borrow?

The maximum loan amount is Nu. 1,000,000/-. The actual loan amount is calculated based on the fee structure, mortgage value and repayment capacity of both student and the guarantor.

7. For how long can I borrow?

Loan can be availed for a maximum period of 15 years

8. When do I start repaying the loan installment? Is there a grace period for repaying the loan?

No, there is no grace period. Your loan installment will be due for payment the following month, after the first disbursement.

9. Do I need to provide collateral for the loan?

Yes, the loan must be:

  • Guaranteed by a current NPPF member
  •  Secured by fixed assets located in urban, sub-urban and extended town areas.

10. When do I start repaying the loan installment? Is there a grace period for repaying the loan?

No, there is no grace period. Your loan installment will be due for payment the following month, after the first disbursement. The loan installment will be tied to guarantor's salary.

11. Where can I apply for the Loan?

At present, loan can be applied at the Head Office, Thimphu only.

12. What documents are required to apply for the loan?

A checklist for document required can be found in the first page of loan application form, please click here

13. How long will it take to process the loan?

5 working days, provided all required documents are complete.

14. How can I repay?

The loan installment must be mandatorily deducted from guarantor's salary.

15. How are the sanctioned loan amount released?

  • Tuition fee is transferred directly to the College/Institute/University semester/year wise.
  • Living expense is paid to student on semester/annual basis.

15. How can I check my loan balance?

Please register into our e-services to view your loan statement.

Pension and PF

1. What is a Pension?

A pension is a monthly income provided to the members after retirement from service or upon his/her permanent disability while in service. It is also paid to the surviving family members in the event of death of a member while in service or after retirement.

2. What is a Provident Fund (PF)?

A provident fund is a lump sum payment made to the member on their retirement or death while in service.

3. Why save for retirement?

  • To have income security after retirement
  • To make up for the rise in cost of living
  • To ensure a dignified life in old age

4. How different is pension from other products like savings in the bank?

  • The money is secured with contribution from member’s basic salary plus equal contribution from the employer while in service and yearly investment return;
  • Unlike the individual bank savings, pension benefit ensures a steady source or regular monthly income after retirement;
  • Monthly pension benefit is increased once every year adjusting to inflation like the annual increment.

5. What kind of retirement benefits can I avail?

  • Normal pension benefit
  • Early pension benefit
  • Permanent disability pension benefit
  • Surviving spouse pension benefit
  • Surviving children/orphan pension benefit
  • Dependent parent pension benefit
  • Provident fund – lump-sum benefit on retirement

 

Click here for details

6. How much contribution do my Employer and I make from my basic salary?

7. If I join another organization, will the scheme be still valid?

  • Option 1

The member can receive accumulated lump-sum provident fund benefit. A member may also opt to receive lump-sum benefit from pension account, if he/she resigns before 20 years of contribution.

  • Option 2

The member can continue contributing to the same pension and provident fund accounts.

8. What are the procedures to claim the pension and provident fund?

The members or nominees will have to complete the requisite claim forms and documents available with the employer and should forward the claim documents to NPPF.

9. Where will I get the monthly pension and provident fund?

A member or nominee will receive provident fund benefit from NPPF either in the form cheque or bank transfer.

A pensioner or surviving family member who are eligible for pension benefit will receive monthly pension benefit from the respective bank branches or Bhutan Post offices as per their convenience by direct crediting to their pension savings account. Every beneficiary must open the individual pension savings account in the prescribed form as per the NPPF instruction. The beneficiary can also change the bank to avail monthly pension benefit with approval from NPPF if he/she moves from one place to another.

10. What is Lo-tedh scheme?

It is a voluntary scheme for pensioners (applicable to pensioners after July 1, 2014) where a premium of Nu. 250 is deducted from their pension amount every month. A lump-sum benefit of Nu. 50,000 is paid to the nominee as “Semso”, in the event of death of a pensioner.