The Rural Enterprise Development Corporation Ltd was launched on 21st May, 2016 through the government order C-2/101/303 dated 18th May, 2016 by the Royal Government with the objective to continue the activities of Revolving Fund-II of the erstwhile BOIC. The REDCL has been incorporated as Public Limited Company under the Companies Act of Kingdom of Bhutan, 2000.
The REDCL was initially managed by the Interim CEO and the interim management team to continue providing the services of RF-II.
Of the total funds of Nu.1.9 billion, Nu. 400 million for RF-II for non-formal rural activities which was formally allocated to BOIC was taken over by REDCL. The RF-II has a ceiling of Nu 500,000 per activity at the interest rate of 4 percent per annum and is meant for non-formal rural activities like livestock, agriculture, manufacturing and others.
The main objective of REDCL is to provide Fund for the non-formal rural activities on a low interest rate of 4% per annum and without any collateral requirement in order to stimulate economic activities and add value to the domestic resources and create employment.
“To generate employment, substitute imports and/or promote exports by promoting non-formal rural activities through timely integrated business support.”
“To stimulate growth of non-formal rural activities by providing necessary support, both administrative and funding support.”