City Bank-bKash nano loan disbursement crosses Tk 10,000 crore

The cumulative disbursement of the City Bank-bKash digital nano loan has exceeded Tk 10,000 crore, marking a milestone in Bangladesh’s digital lending and financial inclusion journey.

Since its commercial launch in December 2021, the service has disbursed loans to 3.5 million bKash app users through more than 3.19 crore loan accounts.

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On average, each customer has taken the short-term loan more than nine times, reflecting strong repeat usage and rising demand for small-ticket digital credit, according to a press release.

Commenting on the milestone, Mashrur Arefin, managing director and CEO of City Bank, said, “At a time when rising non-performing loans remain a major concern for Bangladesh’s banking sector, the portfolio quality of small-ticket digital lending has reached an enviable level.”

“This experience offers valuable lessons and inspiration for the entire banking industry,” he added.

The facility is now available to more than 12 million eligible bKash customers, many of whom previously had little or no access to formal banking services.

Customers can obtain the loan through the bKash app in less than a minute without visiting a branch or submitting paperwork.

Currently, nearly 100,000 customers receive the digital nano loan every day. The average loan size is about Tk 3,000, while monthly disbursement has reached Tk 900 crore.

The loans are mainly used for small business expenses, household needs, medical emergencies and education costs.

Of the Tk 10,000 crore disbursed so far, only Tk 53 crore, or 0.5 percent, has become non-performing or been written off, meaning 99.5 percent of the amount disbursed has been repaid.