Bangladesh's first ever Digital Nano Loan: Customers availed Tk175cr through bKash app

Arif, a private employee, found himself in a predicament when he urgently needed to send Tk10,000 to his father near the end of the month. With limited funds in his account, he turned to the bKash app for a solution. Through this innovative platform, he effortlessly obtained a collateral-free loan of Tk10,000, providing him with immediate relief and enabling him to support his father promptly.

Reflecting on his experience, Arif shared, "Four months ago, it would have been challenging for me to manage my monthly expenses while dealing with an additional Tk10,000 expenditure. Thankfully, I was able to repay the loan in three convenient instalments. This incident has made me truly appreciate the blessings of technology."

As the country's leading mobile financial services (MFS) provider, bKash has taken the lead in introducing Bangladesh's first-ever Digital Nano Loan in collaboration with City Bank.

After a successful year-long pilot phase, the digital nano loan service was officially launched in December 2021. With this service, bKash users are no longer required to visit physical locations or submit extensive documentation to access collateral-free loans through the bKash app.

Since its inception, bKash customers have availed of Tk175 crore in digital nano loans, with Tk125 crore already repaid. The remaining amount will be settled upon the completion of the loan instalments.

Reza, a resident of the capital's Badda area, shared his experience with the loan service. When faced with a shortage of cash while shopping for his family before Eid, Reza utilised bKash's nano loan to avoid returning empty-handed or missing out on essential items from his shopping list.

Expressing his satisfaction, Reza stated, "I use bKash for various transactions, such as sending money, paying bills, and recharging my mobile balance. The hassle-free repayment process through the bKash app is commendable. The app even reminds me of my payment schedule. This instant collateral-free loan system truly is a blessing from bKash."

The introduction of this paperless digital nano loan service aims to enhance financial inclusion and provide customers with instant access to loans. Depending on their credit rating, bKash users can borrow amounts ranging from Tk500 up to Tk20,000 from City Bank.

The loans come with an annual interest rate of 9%, and users can easily repay the loan in three instalments via the bKash app. The daily interest rate is automatically calculated, allowing borrowers to repay the loan ahead of schedule. In such cases, the interest is charged only for specific days. Notably, there are no additional charges for early settlements.

How to avail of a loan

On the bKash app, users need to select the "Loan from Banks and Financial Institutions" icon, input the desired loan amount within the City Bank's limit, and agree to the terms and conditions. Once eligible, users can enter their PIN to receive the loan amount directly in their bKash account.

Ali Ahmmed, chief commercial officer of bKash, emphasised the company's commitment to simplifying and streamlining financial transactions for the public. He described the collateral-free loan as a blessing accessible to individuals from all walks of life.

"bKash has already set a milestone by facilitating digital nano loans to customers based on their credit ratings, which is the first of its kind in Bangladesh. To pave the way to bring more exciting dimensions of the nano loan in the coming days, bKash will continue its endeavour," he concluded.