Bangladesh Bank has extended its digital nano loan refinancing scheme until June 30, 2028, in a bid to promote greater financial inclusion and integrate low-income communities into the country’s digital banking ecosystem.
In a circular issued on September 9, the central bank announced that the programme, initially set to expire in 2024, will now run for an additional four years. Launched in 2022, the scheme was designed to offer small digital loans to underserved and marginalized groups who have limited access to formal credit systems.
The initiative began with a revolving fund of Tk 100 crore, which was later increased to Tk 500 crore before being reverted to its original size. Despite the adjustments, the central bank emphasized that the terms and conditions of the scheme will remain unchanged.
This extension reflects the government’s broader strategy to tackle economic inequality by fostering digital financial inclusion, particularly for those who traditionally rely on informal lending sources. By offering mobile-based loans to underserved populations, Bangladesh Bank aims to increase access to affordable credit while encouraging the adoption of digital financial services.
The decision comes amid growing discussions among regulators in emerging economies about how to expand the reach of formal banking systems without introducing excessive risks. Bangladesh’s model focuses on offering microloans—sometimes as low as a few hundred taka—through mobile platforms, with the goal of replacing high-cost informal lending practices and easing financial pressures on marginalized communities.
The extension of this programme marks a significant step in Bangladesh’s efforts to modernize its financial landscape and reduce economic disparity through technology-driven solutions.
