bKash app users avail Tk 7.0b in digital loan from City Bank

FE Team | Published: March 20, 2024 23:47:30

bKash customers have taken out more than Tk 7.0 billion worth of 'nano loan' from City Bank using the bKash app since the 'digital nano loan' facility was commercially launched in 2021.
This loan product was launched under a joint initiative of the mobile financial services (MFS) provider bKash and the City Bank as part of enhancing the digital transaction ecosystem in the country, says a statement.
So far, over 245,000 bKash customers have availed this collateral-free 'nano loan' for 0.7 million times. Many of these customers have taken this hassle-free, instant and affordable loan multiple times.
The main objective of launching this digital loan is to accelerate financial inclusion of the country'sunderprivileged population, especially women and people living in rural areas, by ensuring their access to credit. Until 2023, some 24 per cent of these customers are women and 55 per cent of the total borrowers live in rural areas.
As per the Bangladesh Bank's directives, bKash customers who have completed e-KYC through biometric system and using bKash app, are considered eligible for this loan from City Bank.
The eligible customers can instantly get the 'nano loan' ranging from Tk 500 to Tk 20,000 from the City Bank with just few taps. To avail this loan, customers don't need to go to any office or sign any document, they don't even need nominee or guarantor for the loan. The validity of this loan is a maximum of three months and with the help of technology, interest rate is determined on daily basis.
About the loan product, City Bank's Head of Retail Banking Arup Haider said, "Through traditional method, we managed to disburse just 0.3 million loans in 15 years, whereas, the nano loan count reached 0.7 million in less than two years. It is a matter of great joy and pride for us."
Ali Ahmmed, Chief Commercial Officer (CCO) of bKash, said, "City Bank's collateral-free loan, which can be taken and repayable through the bKash app, is a revolutionary addition to the scenario of financial inclusion in the country. As a result, a large number of unbanked people have gained the eligibility to digitally access credit facility, giving them more freedom and ability in daily financial transactions."