The cumulative disbursement of the City Bank–bKash Digital Nano Loan has exceeded Tk 100 billion (Tk 10,000 crore), marking a milestone in Bangladesh's digital lending and financial inclusion efforts.
Since its commercial launch in December 2021, the service has provided loans to 3.5 million bKash app users through more than 31.9 million (3.19 crore) individual loan accounts, according to a press release Monday.
On average, each customer has taken the short-term loan more than nine times, reflecting repeat usage of the service and growing demand for small-ticket digital credit.
The facility is currently available to more than 12 million eligible bKash customers, many of whom previously had limited or no access to formal bank credit or banking services. Eligible customers can obtain the loan through the bKash app in less than a minute without visiting a bank branch or submitting paperwork, the press release added.
Nearly 100,000 customers receive City Bank's digital nano loan through the bKash app every day. The average loan size is about Tk 3,000, while monthly loan disbursement has reached Tk 9 billion (Tk 900 crore).
The loans are primarily used to meet short-term financial needs, including small business expenses, household expenditures, medical emergencies and education-related costs.
Of the total Tk 100 billion (Tk 10,000 crore) disbursed, only Tk 530 million (Tk 53 crore), or 0.5 per cent, has become non-performing or been written off. It said 99.5 per cent of the total loans disbursed have been repaid, demonstrating an exceptionally strong repayment culture among its borrowers.
Commenting on the milestone, Mashrur Arefin, Managing Director & CEO of City Bank, said: "At a time when rising non-performing loans remain a major concern for Bangladesh's banking sector, the portfolio quality of small-ticket digital lending has reached an enviable level. This experience offers valuable lessons and inspiration for the entire banking industry."
