The total disbursement of the joint digital loan service by City Bank and bKash has crossed the milestone of Tk 10,000 crore, marking a significant breakthrough in the digital financial inclusion.

Since its commercial launch in December 2021, around 35 lakh bKash app users have availed of this digital loan facility across a total of 3.19 crore loan accounts.

According to City Bank’s data, each customer has taken this short-term loan an average of nine or more times, reflecting strong reuse of the service and a growing public demand for hassle-free, small-scale credit. Currently, the loan facility is accessible to more than 1.20 crore eligible bKash users.

The service has successfully reached segments of the population who previously had little to no access to formal banking infrastructure or institutional credit. Under this facility, bKash users can secure loans in less than a minute through the app without visiting any physical bank branch or submitting physical paperwork.

On average, nearly 1.0 lakh customers avail of this City Bank loan daily via the bKash app. The average loan size stands at approximately Tk 3,000, while the monthly loan disbursement volume has reached Tk 900 crore. These instant loans are primarily used to meet immediate short-term needs, including business operating capital, emergency medical expenses, family costs, and education.

The most remarkable aspect of this digital credit model is its exceptional repayment rate. Out of the Tk 10,000 crore disbursed so far, the combined amount of defaulted and written-off loans stands at only Tk 53 crore, or a mere 0.5 percent. This means 99.5 percent of the disbursed loans have been regularly repaid.

Highlighting the success, City Bank Managing Director and CEO Mashrur Arefin noted that at a time when default loans remain a massive concern for the country's traditional banking sector, the exemplary recovery rate of these small-scale digital loans offers valuable lessons and inspiration for the entire financial industry.