bKash simplifies NGO loan, savings instalment payments

Md Rubel has had strong determination for trying his luck in business since his graduation. During his student life, he was involved with some small ventures, and after completing his studies, he aspired to establish his own business. With initial support from his family and a loan from the microfinance organization DISA, the Chandpur youth started up a dealership business of various consumer products. As his business steadily grows, he is now expanding with fresh investments.

Once, millions of NGO beneficiaries like Rubel had to spend hours visiting branch offices to pay off loan instalments. Gone are those days-digital transformation emerges as a game-changer. Now, customers can pay their NGO loan and savings instalments easily and securely through bKash from the comfort of their home.

"The digital transformation is a blessing," says Rubel in sharing his experience once unthinkable. "As a product distributor, I often remain on the move and rarely stay in the same place. With bKash, I can pay my loan instalments from anywhere, on time. There is no hassle-no more worrying about missing a deadline due to busy schedule," adds the new-generation business boy.

Another NGO beneficiary, Asma Akter, living with her children in Chandpur's Kacha Colony area, also has her tales to tell about a miraculous epoch change. Asma availed a loan of Tk 1.0 lakh from the same NGO for renovating her house. Now, every month, she repays her loan and savings instalments to the NGO using bKash. Besides, she notes, she also receives remittances directly in her bKash account from her husband living in Oman.

Liakat Hossain, a shopkeeper, lives in a backwater village named Dashani, located alongside the River Meghna in Matlab North upazila. He took a loan from the microfinance organization 'Padakkhep' for setting up a shop of his own. Previously, Liakat had to shut his shop and travel to the upazila Sadar every month to pay his instalments-causing disruption to business.

"Now I no longer need to keep shut my shop for long hours just to make a payment. I can send instalment of the loan directly from my bKash account. It's more convenient for me and for the organisation as well," says Liakat.

Today, millions of NGO beneficiaries across the country-just like Rubel, Asma, or Liakat-are paying their microfinance loan and savings instalments using bKash. Customers of over 53 leading NGOs, including BRAC, TMSS, SSS, Padakkhep, BURO Bangladesh, and Shakti Foundation, are now able to use the payments platform for loan-instalment payments.

This collaborative effort between bKash and the country's leading microfinance organisations has made microfinance services more accessible and effective. On the one hand, it has helped people, especially women, to become more financially self-reliant. On the other, it has invigorated the rural and regional economy by promoting employment and improving access to education and healthcare.

Apart from this, NGO workers also find this digital system convenient and efficient. bKash's digital platform has simplified cash management for NGOs by enabling easier collection of instalments of loans and savings, eliminating the risks of carrying physical cash as well as saving valuable working hours.

Md. Jahangir Alam, Regional Manager of DISA, said, "Earlier, we could not be able to onboard many potential members as they preferred to transact through digital means. Now beneficiaries can pay off their instalments from anywhere through their mobile phones. Our instalment -collection process has also become safer and efficient."

Tips on instalment payment through bKash: Clients can pay instalments of loans and savings in a few easy steps by tapping the 'Microfinance' icon on the bKash app or by dialling the USSD code *247#. First, they need to click on the 'Microfinance' option on the app screen, select the specific organisation from the list and click on it. Then the customers have to enter branch information, member number or ID. In the next step, after checking the loan instalment and savings details, they need to enter the amount and complete the process using bKash PIN. Once the payment is completed, the payer can download the digital receipt from the app and preserve it.