Nano Loans Top Tk 10,000cr, Fueling Nation’s Digital Credit Revolution

The City Bank-bKash Digital Nano Loan has crossed a landmark Tk10,000 crore in cumulative disbursements, cementing its position as one of Bangladesh's most successful fintech innovations and highlighting the country's rapid emergence as a leader in digital financial inclusion.

The milestone underscores a remarkable transformation in access to formal credit, with millions of low-income earners, small traders and micro-entrepreneurs now able to secure instant, collateral-free loans through their mobile phones-without visiting a bank branch or completing paperwork.

Since its commercial launch on 15 December 2021, following a year-long pilot programme supervised by Bangladesh Bank, the country's first fully digital nano lending platform has disbursed more than Tk10,000 crore through 3.19 crore individual loans to 3.5 million bKash app users.

On average, each customer has borrowed more than nine times, reflecting strong customer confidence, high repeat usage and the growing demand for instant access to small-ticket credit, according to a press release.

The facility is now available to more than 12 million eligible bKash customers, most of whom previously had little or no access to formal banking services. Eligible users can obtain a loan in less than a minute directly through the bKash app, eliminating the need for branch visits, paperwork or collateral.

The platform now disburses nearly 100,000 digital nano loans every day, with an average loan size of around Tk3,000. Monthly disbursements have surged to approximately Tk900 crore, helping borrowers meet urgent financial needs ranging from working capital for small businesses to household expenses, medical emergencies and education costs.

Perhaps the most striking achievement is the portfolio's exceptional asset quality. Of the more than Tk10,000 crore disbursed, only Tk53 crore, or 0.5 per cent, has turned non-performing or been written off, meaning an impressive 99.5 per cent of all loans have been repaid. The repayment record stands in sharp contrast to Bangladesh's broader banking sector, which continues to grapple with soaring default loans.

Commenting on the milestone, Mashrur Arefin, Managing Director and CEO of City Bank, said the portfolio's performance demonstrates the immense potential of technology-driven lending.

"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," he said.

The City Bank-bKash Digital Nano Loan is widely regarded as a small-credit revolution in Bangladesh. By enabling eligible customers to access instant, collateral-free credit through a mobile app, it has addressed one of the country's biggest financial inclusion challenges-providing timely and affordable formal credit to low-income households and micro-entrepreneurs who were traditionally excluded from the banking system.

Initially offering loans ranging from Tk500 to Tk20,000, repayable in three equal monthly instalments at Bangladesh Bank-approved interest rates, the service expanded its digital credit ecosystem in April 2024 with the launch of the 'Pay Later' feature, allowing eligible customers to make interest-free purchases if repaid within seven days.

The success of the platform mirrors a global shift towards digital lending. Industry analysts estimate that more than 500 million people worldwide have accessed some form of digital microcredit or nano loan, as fintech firms increasingly use technology and alternative data to extend formal credit to underserved populations.

Financial experts believe responsibly managed digital nano loans can reduce dependence on informal moneylenders, deepen financial inclusion and stimulate entrepreneurship by providing quick access to working capital. They caution, however, that the rapid expansion of digital lending must be accompanied by transparent pricing, prudent underwriting, strong consumer protection and responsible borrowing to prevent over-indebtedness.

As Bangladesh accelerates its digital transformation, the City Bank-bKash Digital Nano Loan is increasingly being seen as a blueprint for the future of retail banking-demonstrating how technology, innovation and responsible finance can bring millions into the formal financial system while maintaining exceptional portfolio quality. The platform's success offers a compelling model for banks and fintech companies seeking to expand financial inclusion without compromising credit discipline.