Investment Product and Service

As part of the fund management mandate, the accumulated fund is invested in various assets class such As part of the fund management mandate, the accumulated fund is invested in various assets class such as equities, loans and bonds, deposit with banks, real estate etc. Due to the limited investment avenue in the local market, loans to members and corporate bodies form one of the major investment avenue for NPPF. The main objective of the investment function is to ensure that the accumulated funds are invested in a diversified pool of assets to generate returns to ensure the sustainability of the Fund.

Corporate Loans

Corporate Loan

NPPF provides long term and short-term corporate loans to the following:

  1. Royal Government & its Institution, Agencies and Projects,
  2. Government owned, Joint sector corporations and public limited companies incorporated under the companies act of the kingdom of Bhutan.
  3. To projects under taken by private institutions/individuals but only by way of consortium financing with other financial institutions.

In order to avail corporate loan, please find the check list that is required by the client to submit to NPPF for necessary actions. Click here.

Following are the Interest range applicable on corporate loans but the rates may differ for different corporations/projects based on individual corporations/projects association to risks.

Loan Tenor Interest Rate
Up to 3 Years 7.65% to 10.15%
Up to 5 Years 7.73% to 10.23%
Up to 7 years 7.85% to 10.35%
Up to 10 Years 8.10% to 10.60%
Above 10 years 8.85% to 11.35%

Real Estates

Real Estate

Real Estate forms one of the strategic asset class to make long term investments of the Fund. The focus of real estate development is on building commercial and residential spaces that yield return on investments necessary to generate a sustainable rate of returns on the members’ fund. Currently, NPPF has three construction projects in progress at Thimphu, Gelephu and Phuntsholing.

Besides the development of infrastructure, the management of these assets are carried out in house by a team of maintenance staff.

All tenants of the NPPF commercial and residential units are  required to pay rent on or before the 10th day of the following/ensuing month directly to the Bank or its branches indicated in the tenancy agreement using the preprinted/pre-numbered rent invoices supplied by the NPPF or as per the directives or procedures prescribed by the NPPF from time to time. Failure to pay the monthly rent within the stipulated deadline shall attract penalties as per the terms and conditions of the lease agreement.


Based on the performance of the investment portfolio, returns are credited to members’ account annually. The annual returns credited to members’ account forms part of members fund and therefore, members earns benefit equivalent to compound interest on their contribution. For example, if a member has an accumulated balance of Nu. 100 in your provident fund account and NPPF credits an annual return of 8% during the year, the following year, the member will get return on Nu. 108 (Nu. 100 + Nu 8). Therefore, effectively, all members have the benefit of earning compounding rate of returns on their contribution, which are not available in normal banking products.

The following is a graphical representation of returns declared to our members: