City Bank has launched a collateral-free, instant ‘Digital Nano Loan’ for bKash users, following the successful completion of a year-long pilot project.
EntitledbKash users can now apply for a loan from BDT 500 to BDT 20,000 through bKash app, get the loan instantly and repay the credit in three equal monthly instalments (EMI)from their bKash accounts. The loan interest rate will be 9% per annum, as per the Bangladesh Bank’s guidelines, said a press release.
Sate Minister for Information and Communication Technology Zunaid Ahmed Palak opened the Digital Nano Loan as chief guest at a hotel in Dhaka on Wednesday (December 15).
Launching the ‘Digital Nano Loan’ State Minister Zunaid Ahmed Palak, said, “The opportunity for people outside the formal banking channel to obtain collateral-free instant digital ‘nano loan’ from banks provide the success story of Digital Bangladesh. This innovative initiative of City Bank and bKash in-cooperation with the policy support from the central bank is another step forward to implement the government’s vision ensuring digitalcapability in every sector. The convenience of getting digital nano loan will play a significant role in uplifting the living standards of the people of Bangladesh.”
Abu Farah Md. Nasser, Deputy Governor of Bangladesh Bank, said, ‘”The country is now moving fast towards the highway of development with the help of the government’s strategy of inclusive economy. As a result, the country’s banking sector is becoming more people orientedand digitalin a stable way. City Bank’s Digital Nano Loan through bKash app is aninnovativestep. The support of Bangladesh Bank for initiating this new service was always in the past and will continue to in the days ahead.”
Aziz Al Kaiser, Chairman of City Bank, MashrurArefin, MD & CEO of City Bank, Kamal Quadir, CEO of bKash, Md.Zafrul Hasan, Head of Digital Financial Services of City Bank,AliAhmmed, Chief Commercial Officer of bkashand senior officials of both the organizations were present at the event.
City Bank’s Digital Nano Loan, in cooperation with bKash, is a groundbreaking initiative that enables the customers, particularly the unbanked population, to get access to formal financing 24/7 through mobile wallet at a comparatively low interest rate from a scheduled commercial bank. They can avail this loan through digital credit assessment and easily avoid hassles of traditional lengthy borrowing procedure.The initiative represents a major milestone in upholding the Bangladesh government’s extensively acclaimed vision for a ‘Digital Bangladesh’.
Eligible bKash app users, as determined by City Bank based on its credit risk management policy, will be able to avail thisDigital Nano Loan. As a launch offerCity Bank will not charge the borrowers any loan processing fee till furthernotice.
City Bank’s Digital Nano Loan involves daily interest calculation and processing. A borrower can repay a loan earlier than the due date, and in such cases, borrower will bear interest only for the days the loan was outstanding. Besides, there will be no cost for early settlement of the loan. On the other hand, borrowers will be notified of their loan due date on their mobile.
To avail the Digital Nano credit, bKash users will need to click on ‘Loan (from bank and financial institution)’ icon on the bKash app and enter into the desired loan amount within the limit approved by City Bank, by accepting the terms and conditions. Entering the bKash PIN, the loan amount will be instantly disbursed into user’s bKash account, said a press release.
