city bank launches digital loan with bKash

Welcome to a new era of digital transformation in banking.

City Bank in collaboration with bKash have started offering a first-of-its-kind Digital Loan that will enable users to request and receive loans instantly through bKash.

This initiative has been launched for the first time in Bangladesh with the approval of Bangladesh Bank and this service aims to facilitate and expand financial access to the unbanked population and contribute towards the journey of financial inclusion.

City Bank’s instant digital loan will bring impactful changes to micro-entrepreneurs, marginalized people, students or absolutely anyone to meet their emergency personal or business needs.

Features

Loan amount: BDT 500 - BDT 30,000
Loan tenor: 3 months (Nano loan) & 6 months (BNPL)
Interest rate: 16-18% per annum
Interest calculation: daily
Processing fee: 0.575% (will be charged during loan disbursement).

FAQ

1. What is the minimum and maximum amount of Digital Loan I can take?
If eligible, you can take a Digital Loan ranging from Tk 500 to Tk 30,000.

2. What are the available loan tenors?
You can choose from two types of loans:

Nano Loan: 3 months
Buy Now Pay Later (BNPL): 6 months

3. What is the interest rate for the Digital Loan?
The interest rate ranges from 16% to 18% per annum, based on customer rating & repayment behavior.

4. If I take a Tk 1,000 Digital Loan for 3 months, what is the amount of interest I have to pay?
You will pay interest based on daily calculation. For a 3-month loan of Tk 1,000, the interest will be approximately Tk 40–45 depending on the applicable rate and repayment date.

5. How is interest calculated?
Interest is calculated on a daily basis. This means if you repay early, your interest amount will be lower.

6. Is there a loan processing fee?
Yes, there is a processing fee of 0.575% charged at the time of disbursement. For a Tk 1,000 loan, this would be Tk 5.75.

7. Is there a penalty interest rate for late payments?
Yes, a penalty interest of 1.5% per annum will be applied for late payments.

8. What happens if I do not repay the loan?
City Bank will take necessary action against you as per Bangladesh Bank regulations, including reporting your information to the Bangladesh Bank.

9. Who is providing the loan?
City Bank is the loan provider. As a bKash user, you request the loan via the bKash App. The loan is disbursed to your bKash account, and repayment will also be made from your bKash account.

10. Why am I not eligible for a Digital Loan even though I use the bKash App?
You may not be eligible for one or more of the following reasons:

Your bKash account is not biometrically verified.
According to City Bank’s credit policy, your account is not yet qualified for a loan. To improve eligibility, use your bKash account more frequently.