City Bank has increased the loan limit for bKash users under its digital nano loan service, allowing eligible customers to borrow up to Tk50,000 without any collateral.
This move is part of the continuing collaboration between the private commercial bank and the country’s leading mobile financial service provider.
The digital loan facility was first introduced in 2021 as a joint initiative to improve access to credit for underserved populations, particularly those without formal banking history.
Previously, users could borrow up to Tk30,000 under this scheme. However, in response to growing customer demand, strong repayment performance, and the need for more accessible short-term credit, the limit has now been raised. The enhancement aligns with guidelines from the Bangladesh Bank.
Since its inception, the service has gained significant traction. More than 10 lakh bKash users have taken out over 55 lakh loans through the app, with the total disbursed amount nearing Tk2,800 crore.
This underscores the rising importance of digital finance solutions in promoting financial inclusion across the country.
As per a press release issued on Wednesday, eligible users can apply for the loan directly via the bKash app by tapping the “Loan” icon.
The approval process is entirely automated and based on each user’s transaction behaviour and creditworthiness, assessed under City Bank’s credit risk management framework.
The loan amounts start from Tk500, with a maximum repayment tenure of six months. Monthly instalments are automatically deducted from the user’s bKash account on the due date.
Borrowers also have the flexibility to repay early—either partially or in full—without any penalty. Interest is charged only for the actual borrowing period.
Notably, the service is entirely paperless, eliminating the need to visit a bank branch or submit documentation. This makes it a seamless and convenient credit option for bKash users across Bangladesh.
bKash has highlighted that customers who are not currently eligible can improve their chances of qualifying for future loans by using core services such as Add Money, Savings, and Payments more regularly.
This expansion marks another step forward in Bangladesh’s growing fintech ecosystem, illustrating how digital solutions are reshaping access to financial services for the wider population.