City Bank launches nano loan service with bKash

The City Bank Limited on Wednesday launched the country’s first collateral-free instant Digital Nano Loan service through mobile financial service bKash.

Under the service, users can request and receive instant loans ranging from Tk 500 to Tk 20,000 through the

bKash app.

The customers will be able to repay the loan in three equal monthly instalments (EMI) from their bKash accounts.

The loan interest rate will be 9 per cent per year as per the Bangladesh Bank guideline.

Eligible bKash app users, as determined by City Bank based on its credit risk management policy, can avail of this loan through digital credit assessment while avoiding the hassles of the traditional borrowing process.

State Minister for ICT Division Zunaid Ahmed Palak launched the service at an event at a Dhaka hotel.

Earlier in July 2020, the City Bank launched the service on a pilot basis with the approval of Bangladesh Bank and aiming to expand access to financial services for unbanked populations and contribute towards the journey of financial inclusion.

The service involves daily calculation and processing, which means, a borrower will bear interest only for the days the loan was outstanding. There is no cost for the early settlement of the loan as well.

As a launch offer, the City Bank will not charge the borrowers any loan processing fee till further announcement.