City Bank has launched a collateral-free, instant ‘Digital Nano Loan’ for bKash users, after the successful completion of a year-long pilot project. Eligible bKash users can now apply for a loan ranging from BDT 500 to BDT 20,000 through bKash app, receive the loan instantly and repay the loan in three equal monthly instalments (EMI) from their bKash accounts. The loan interest rate will be 9% per annum, following Bangladesh Bank’s guidelines.

Zunaid Ahmed Palak, MP, Minister of State for Information and Communication Technology, inaugurated the Digital Nano Loan as the chief guest at a hotel in Dhaka today. Abu Farah Md. Nasser, Deputy Governor of Bangladesh Bank and Aziz Al Kaiser, Chairman of City Bank were  present as the special guests. Mashrur Arefin, Managing Director and CEO of City Bank, Kamal Quadir, CEO of bKash, Md. Zafrul Hasan, Head of Digital Financial Services of City Bank, Ali Ahmmed, Chief Commercial Officer of bkash and senior officials of both the organizations were also present at the event.

City Bank’s Digital Nano Loan, in partnership with bKash, is a groundbreaking initiative that will enable the customers, especially the unbanked population, to access formal financing 24/7 through mobile wallet at a relatively 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 process. This initiative represents a major milestone in promoting the Bangladesh government’s widely 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 this Digital Nano Loan. As a launch offer City Bank will not charge the borrowers any loan processing fee till further announcement.

City Bank’s Digital Nano Loan involves daily interest calculation and processing. A borrower can repay a loan earlier than the due date, and on such cases, borrower will bear interest only for the days the loan was outstanding. There is no cost for early settlement of the loan as well. Borrowers will be notified of their loan due date on their mobile devices.

City Bank’s Digital Nano Loan product innovations can be attributed to the strong technology support role played by bKash and its strategic partner, Ant Group, a leading technology company.  To avail the Digital Nano Loan, bKash users will need to click on ‘Loan (from bank and financial institution)’ icon on the bKash app and enter the desired loan amount within the limit approved by City Bank, as well as accept the terms and conditions. After entering bKash PIN, the loan amount will be instantly disbursed into user’s bKash account provided the bkash user qualifies for the loan.

Commenting on the commercial launch of Digital Nano Loan, State Minister Zunaid Ahmed Palak, MP, said, ‘The opportunity for people outside the formal banking channel to get collateral-free instant digital nano loan from banks talks about the success story of Digital Bangladesh. This innovative initiative of City Bank and bKash with the policy support from the central bank is another step towards implementing the government's vision of going digital in every sector. The convenience and availability of getting digital nano loan will play a major role in uplifting the living standards of the people of the country.’

Abu Farah Md. Nasser, Deputy Governor of Bangladesh Bank, said, ‘Bangladesh is now moving fast forward on the highway of development with the help of the government's strategy of inclusive economy. As a result, the banking sector of Bangladesh is becoming more people centric and digital in a steady way. City Bank’s Digital Nano Loan through bKash app is a groundbreaking initiative. The support of Bangladesh Bank for launching this new service was always there and will continue to be there.’

Aziz Al Kaiser, Chairman of City Bank said, ‘this digital Nano loan will play a big role in making Bangladesh fully digital, as envisioned by our honorable Prime Minister. Customers need not to have a bank account to take this loan. They will able to take and repay their loan by their bkash account. No collateral will be required for this loan. So this will help the business sector grow.’

Mashrur Arefin, MD & CEO of City Bank said, ‘Financial inclusion in Bangladesh so far meant banks and mobile financial services companies taking deposit and making money transfer digitally for the mass population. It was never about giving loans to the masses. Hence, there has always been this ethically wrong approach towards financial inclusion, which finally sees itself resolved with this launch of Digital Nano Loan.’

Kamal Quadir, CEO of bKash, said, ‘The integration between Bank and MFS has opened up multitude of opportunities where banks can design more creative and inclusive services through digital platform leveraging the large customer base of bKash. This initiative further validates the complementing arrangement that banks and bKash developed over the years through cooperation and confidence on each other. The Digital Nano Loan will broaden the scope of financial inclusion.’