bKash users can now avail collateral-free digital loans of up to Tk 50,000 directly from City Bank through the bKash app.

Eligible customers can avail this instant loan anytime for any financial need, said a press release issued on Wednesday.

The digital loan service, launched in 2021 as a joint initiative of bKash and the City Bank, has already accumulated trust and confidence of the customers.

Previously capped at Tk 30,000, the loan limit has been increased recently to Tk 50,000 in response to growing customer demand, enhanced trust and convenience in compliance with regulatory directives of the Bangladesh Bank.

Since its commercial launch, around 1.0 million bKash customers have secured digital loans over 5.5 million times, totaling around Tk 28 billion.

Customers can instantly get the ‘digital loan’ from the City Bank with just a few clicks by tapping the ‘Loan’ icon on the bKash app, ranging from Tk 500 to Tk 50,000 for a maximum duration of 6 months.

For this, there is no need to go to the bank while paperwork is not required either.

Based on several years of experience and success, this digital loan has become an exceptional example of fintech services in the country.

The customer’s loan eligibility and loan amount are determined through an automated process based on the review of customer transactions in the bKash account and the City Bank’s credit risk management policy.

Meanwhile, those who have not yet come under the scope of the digital loan service, can become eligible for a loan by regularly using various services including Add Money, Savings, Payments, and other services through bKash account.

Process of getting and repaying digital loans through bKash app from the City Bank

To apply for a loan, an eligible customer needs to tap the ‘Loan’ icon on the bKash app, enter the desired loan amount within the limit approved by the City Bank and go to the next step, read, understand and agree to the terms and conditions carefully.

In next step, enter the bKash PIN, then tap and hold to get the loan amount instantly in bKash account.

Depending on the loan type, the customer will need to repay the loan in monthly instalments.

The installment amount will be automatically deducted from the bKash account on the due date.

However, if customers want, they can repay the loan partially or completely before the end of tenure.

In this case, interest will be applicable only for that period. Besides, no additional charges will be applicable for advance loan settlement.