City Bank and bKash’s Digital Nano Loan service has crossed cumulative disbursements of Tk 10,000 crore, marking a milestone in Bangladesh’s digital lending and financial inclusion efforts, the companies said in a press release.
Since its commercial launch in December 2021, the service has provided loans to 3.5 million bKash app users through more than 3.19 crore individual loan accounts. The facility is now available to more than 12 million eligible bKash customers, many of whom previously had limited or no access to formal banking services.
The digital lending service allows eligible customers to access loans through the bKash app in less than a minute without visiting a bank branch or submitting paperwork.
On average, each customer has taken the short-term loan more than nine times, reflecting repeat usage and demand for small-ticket credit, according to the press release.
Currently, nearly 100,000 customers receive City Bank’s digital nano loan through the bKash app every day. The average loan size is around Tk 3,000, while monthly disbursement has reached Tk 900 crore.
The loans are mainly used for immediate financial needs, including small business expenses, household spending, medical emergencies and education-related costs.
The portfolio’s repayment performance has been highlighted as a key achievement, with only Tk 53 crore, or 0.5 percent, of the Tk 10,000 crore disbursed becoming non-performing or being written off.
The companies said 99.5 percent of the total loans disbursed have been repaid, reflecting strong repayment behaviour among borrowers.
Commenting on the milestone, City Bank Managing Director & CEO Mashrur Arefin said the quality of the small-ticket digital lending portfolio was notable at a time when rising non-performing loans remain a major concern for Bangladesh’s banking sector.
“This experience offers valuable lessons and inspiration for the entire banking industry,” he said.
