bKash–City Bank Digital Nano Loan Gains Popularity Across Bangladesh

Customers are now easily accessing collateral-free digital nano loans from City Bank through the bKash app, offering significant support during emergencies. Within just three years of its launch, users have taken loans totaling more than BDT 50 billion under this facility.

Currently, over 1.9 million customers across the country are using this micro-loan service, of which 25 percent are women. According to bKash data, loans have been taken approximately 12.7 million times, indicating that most customers have availed the facility multiple times. Notably, no separate documentation is required to obtain the loan.

With only a few taps on the bKash app, customers can instantly receive loans ranging from BDT 500 to BDT 50,000. The maximum repayment period is three months. Data analysis shows that demand for this loan is highest among customers aged between 18 and 35 years. Users from Dhaka and Chattogram divisions are comparatively more active in using the service.

Customers primarily use the loan amount for medical expenses, education, business capital expansion, starting new ventures, travel, and other urgent needs. Initially, the maximum loan limit was BDT 20,000, which has gradually increased to BDT 50,000 based on customer demand. The loan amount is automatically determined through analysis of customers’ transaction behavior and usage patterns. Those who are not yet eligible can increase their chances by regularly using various bKash services.

Payment of 3 thousand 5 crore rupees per month.

Loan repayments are made automatically through the bKash app on the scheduled date, provided there is sufficient balance in the account. All details regarding interest rates and repayment schedules are available within the app. If customers repay the loan before the due date, interest is charged only for the duration the loan was used. Customers also receive notifications and SMS reminders ahead of installment deadlines.

In addition to micro-loans, bKash and City Bank are offering a “Pay Later” service, making it easier to purchase essential and emergency goods even without sufficient balance at the time of payment. bKash also provides a small savings facility, allowing customers to open DPS (Deposit Pension Scheme) accounts from home without a bank account. DPS services are currently available with Mutual Trust Bank, Dhaka Bank, City Bank, BRAC Bank, and IDLC Finance.

Shamsuddin Haider Dalim, Head of Corporate Communications at bKash, said that access to collateral-free digital loans through mobile phones is strengthening financial inclusion in Bangladesh. He added that such services are emerging as reliable solutions for small entrepreneurs and individuals facing financial challenges.