City Bank, bKash launch special digital nano loan service

City Bank and bKash have jointly launched 'Pay-Later', a special collateral-free digital nano loan service that facilitates payments with interest-free loan through bKash app.

Now customers can buy any product or services and pay directly with this special loan, even if they don't have sufficient balance in their accounts. They don't have to pay any interest if the due amount is paid within seven days.

Mashrur Arefin, Managing Director and CEO of City Bank, and Kamal Quadir, Chief Executive Officer of bKash, inaugurated this special digital nano loan service 'Pay-Later' at the head office of City Bank on Monday. Senior officials of both organisations were also present in the launching ceremony.

Subject to eligibility, customers will be given a combined limit of Tk 500 to Tk 30,000 loans through which they can avail both Pay-Later and Digital Nano Loans instantly.

This Pay-Later service has been launched with the aim of accelerating financial inclusion, increasing the ability of marginalised people to purchase essentials and daily necessities.

Customers will get the opportunity to use the Pay-Later service by shopping with the bKash app at more than 600,000 merchant points across the country.

To avail this loan, eligible customer needs to scan the merchant QR code or input the merchant number, input the transaction amount and select Pay-Later option. In the next step, the customer has to select between the following methods: interest free repayment within seven days or repayment in 6 months.

For 7-day interest-free repayment option, if a customer fails to fully repay within seven days, then that Pay-Later will convert into a 3-month loan with a 9 per cent interest per annum.

In the 6-month repayment option, a customer needs to make an upfront payment 20 per cent of the total payment amount, the remaining 80 per cent will be divided into equal instalments.

The instalments will be paid automatically on the specified date of every month. In this case, a 9 per cent interest per annum will be applicable. In both cases, a processing fee of 0.575 per cent, including VAT, will be added.