BB launches Digital Nano Loan at 9% interest

The Bangladesh Bank has set up a Tk 100 crore refinance scheme called “Digital Nano Loan” to give micro-level customers access to loans at a 9 per cent interest rate.

Under the scheme, a customer – through internet and mobile banking, mobile financial services (MFS), and e-wallet – will get loans.

The minimum and maximum loan amount will be Tk 500 and Tk 50,000 respectively while the loan period will be six months for both banks and customers, said the Banking Regulation and Policy Department of the central bank in a circular on Thursday.

The tenure of the scheme formed by the central bank’s own fund is three years. It is a revolving fund. From time to time, the central bank will be able to reduce or increase the maximum and minimum loan amount customers are eligible for.

Initially, loans of Tk 50 crore will be disbursed. If the disbursement goes well and better use of the loans can be ensured, another Tk 50 crore will be disbursed in the
second phase. Interested banks have to make a participation agreement with the Financial Inclusion Department of the central bank. The whole process – from loan disbursement to recovery – will be digital.

Participating banks can borrow from the scheme at 1 per cent and then lend to customers at 9 per cent. They have to pay back the principal and interest to the Bangladesh Bank in quarterly instalments, the circular said.