Bangladesh Bank introduced a Tk 100 crore refinance scheme for “digital nano loan” disbursements with an aim to expand the financial inclusion of marginalised people.
Participating banks will be able to disburse loans of Tk 500 to Tk 50,000 to individual customers with up to 9 per cent interest under the scheme.
The loans have to be disbursed entirely digitally by using internet banking, mobile apps, mobile financial services (MFS), or e-wallet services, according to a central bank circular.
Scheduled banks will be able to avail the fund to disburse it to customers. Of the Tk 100 crore, Tk 50 crore will be disbursed as loans and later, another Tk 50 crore will be given as refinance benefits.
However, the banks will have to have digital infrastructure to disburse the loans or partner with any digital financial service provider, according to a Bangladesh Bank official.
Beneficiaries will have to repay the loan within six months of receiving it.
“We are greatly encouraged by this good initiative taken by the central bank,” said Kamal Quadir, founder and chief executive officer of bKash, a leading digital financial service provider in the country.
AKM Fahim Mashroor, chief executive officer of Delivery Tiger, which recently collaborated with microfinance intuition Shakti Foundation to disburse collateral-free digital loans among SME-based F-commerce companies, echoed the same.
“It is a step in the right direction,” he said, adding that it would be difficult for banks to disburse the fund on their own.
“So, it is important to engage fintech companies in this process so that they can engage in credit rating, loan collection and so on.”
Mashroor went on to say that it is very important for SMEs and MSMEs to get this loan.
“But Tk 100 core is a small amount, it should be increased to Tk 500 crore and clients should be eligible to get up to Tk 2 lakh,” he said.
The global phenomena of digital lending entered Bangladesh after City Bank, in collaboration with MFS provider bKash, launched the product in December last year.
“Our current banking partner for such small loans, City Bank, might avail this facility. We are also excited by the fact that this financing facility is being launched after the first pilot and the subsequent successful launch of Bangladesh’s first digital nano loan through bKash in partnership with City Bank,” said Quadir.
“The regulatory facilitation and guidance of Bangladesh Bank will help us to continue our work of bringing new inclusive financial products,” he added.
Dhaka Bank and Prime Bank is running a pilot digital nano loan project to launch the service soon.
– With The Daily Star input
