As mandated by the Royal Government of Bhutan vide executive order No.COM/03/02/787 dated April 8, 2002 and as approved by the National Pension Board in the 10th Meeting held on March 21, 2003, the National Pension and Provident Fund is extending Housing Loan to its members. The objective of the loan is to provide financing to construct, acquire and repair residential house or flat during the service period of a member. The following are the terms and conditions: -

1. Eligibility

The borrower shall have been a member of the NPPF for a period of not less than 5 years. Every such member shall be eligible for one loan during his/her membership in the Fund.

2. Quantum

The maximum loan amount to each eligible member shall not exceedNu. 3,000,000 or 70 percent of the estimated cost, whichever is less.

3. Rate and Method of Computation of Interest.

The rate of interest shall be 10% per annum computed at the end of each quarter using the Daily Product Method.

4. Tenure & Repayment

The maximum tenure of a loan shall be 20 years, and repayment shall be on the basis of equated monthly installments.

5. Security

The primary security against the loan shall be the Land/house/apartment that is financed by the loan, and the member’s Provident Fund balance shall be the secondary security.

Loan application forms are available with Credit and Investment Division. For further details the members may contact:
Ms. Karma Yangzom Tshering, Credit Head, NPPF, Thimphu during office hours.