BRAC Bank PLC has launched a fully digital nano loan facility for bKash merchants, enabling eligible merchants to receive loans of up to Tk 50,000 with approval and disbursement completed within one minute.
The announcement was made on Monday by Syed Abdul Momen, Additional Managing Director (AMD) and Head of SME Banking at BRAC Bank, at a roundtable titled “Financing Opportunities in Bangladesh: Building a More Enabling Financial System for the Private Sector”, jointly organised by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB) in the capital.
Momen said the service was launched last week on a pilot basis and received nearly 400 loan applications within its first four days.
Backed by a robust digital ecosystem, the entire process—from application verification to approval and fund disbursement—is completed in about one minute.
“Initially, we have selected nearly 60,000 merchants for the pilot programme. Based on the experience, the bank will gradually expand the programme across the country,” he said.
He said bKash had earlier introduced nano loans for its customers, while BRAC Bank has now extended the facility to bKash merchants. The initiative will enable small businesses to access working capital quickly and seamlessly.
Momen said one of the biggest challenges to expanding digital financial services in Bangladesh is the limited availability of data across different stakeholders. More secure and seamless data sharing among banks, mobile financial service (MFS) providers and telecom operators under an appropriate regulatory framework would facilitate the development of innovative financial products and enable faster lending decisions.
He added that wider access to data-driven insights would help financial institutions develop more innovative products and services for small entrepreneurs.
Momen also said improving digital data sharing and establishing a private credit bureau could help banks assess SME borrowers more accurately without relying heavily on collateral.
Speaking at the event, Bangladesh Krishi Bank Chairman Mohammed Nurul Amin said nano financing is essentially a form of microfinance that has traditionally been provided by microfinance institutions.
He stressed the need to leverage technology and digital financial services to expand access to credit for small businesses.
The event, supported by the Australian Government’s Department of Foreign Affairs and Trade (DFAT), featured a keynote presentation by Dr M. Masrur Reaz, Founder and Chairman of Policy Exchange Bangladesh.
Among others, American Chamber of Commerce in Bangladesh (AmCham) President Syed Mohammad Kamal, Bangladesh-Thai Chamber of Commerce President Shams Mahmud, PwC Bangladesh Country Managing Partner Shams Zaman, and representatives from banks, financial institutions, development partners and business associations also spoke at the roundtable.
[Note: Initially, the reporter was informed that the highest figure of the digital nano loan facility is Tk 500,000. Later, the figure was confirmed as Tk 50,000 by the authorities concerned.]