City Bank, bKash launch 'Digital Nano Loan'

City Bank has launched a collateral-free, instant 'Digital Nano Loan' for bKash users, after the successful completion of a year-long pilot project.

Eligible bKash users can now apply for a loan ranging from Tk 500 to Tk 20,000 through bKash app, receive the loan instantly and repay the loan in three equal monthly installments (EMI) from their bKash accounts. The loan interest rate will be 9 per cent per annum, following Bangladesh Bank's guidelines, says a press release.

State Minister for Information and Communication Technology Zunaid Ahmed Palak inaugurated the Digital Nano Loan as the chief guest at a city hotel on Wednesday. Abu Farah Md. Nasser, Deputy Governor of Bangladesh Bank, and Aziz Al Kaiser, Chairman of City Bank, were present as special guests.

Mashrur Arefin, Managing Director and CEO of City Bank, Kamal Quadir, CEO of bKash, Md Zafrul Hasan, Head of Digital Financial Services of City Bank, Ali Ahmmed, Chief Commercial Officer of bkash, and senior officials of both the organisations were also present at the event.

City Bank's Digital Nano Loan, in partnership with bKash, is a groundbreaking initiative that will enable the customers, especially the unbanked population, to access formal financing 24/7 through mobile wallet at a relatively low interest rate from a scheduled commercial bank. They can avail this loan through digital credit assessment and easily avoid hassles of traditional lengthy borrowing process.

This initiative represents a major milestone in promoting the Bangladesh government's widely acclaimed vision for a 'Digital Bangladesh'.

Eligible bKash app users, as determined by City Bank based on its credit risk management policy, will be able to avail this Digital Nano Loan. As a launch offer, City Bank will not charge the borrowers any loan processing fee till further announcement.

City Bank's Digital Nano Loan involves daily interest calculation and processing. A borrower can repay a loan earlier than the due date, and on such cases, borrower will bear interest only for the days the loan was outstanding. There is no cost for early settlement of the loan as well. Borrowers will be notified of their loan due date on their mobile devices.

City Bank's Digital Nano Loan product innovations can be attributed to the strong technology support role played by bKash and its strategic partner, Ant Group, a leading technology company.

To avail the Digital Nano Loan, bKash users will need to click on 'Loan (from bank and financial institution)' icon on the bKash app and enter the desired loan amount within the limit approved by City Bank, as well as accept the terms and conditions. After entering bKash PIN, the loan amount will be instantly disbursed into user's bKash account provided the bkash user qualifies for the loan.