Interest-free loans up to Tk 5,000 to be available for mobile banking for bill payments, recharge

Bangladesh Bank has taken an initiative to introduce a new digital lending facility for customers to cover urgent expenses such as mobile phone recharges and utility bills, including gas and electricity payments. 

Under the proposed service, customers will be able to borrow between Tk 50 and Tk 5,000 through mobile banking without paying any interest.

According to the draft policy prepared by the central bank, the small loan will have to be repaid within 30 days.

The initiative is primarily aimed at promoting a cashless economy and expanding access to digital financial services across the country. The draft policy has already been published for public and stakeholder feedback. 

Bangladesh Bank will issue the final guidelines after carefully reviewing the recommendations and opinions received. 

The proposed policy clearly states that no interest will be charged on the digital loans. However, banks or service providers will be allowed to charge a fixed service fee based on the loan amount. Under the proposed fee structure, loans ranging from Tk 50 to Tk 250 will carry a maximum service fee of Tk 5, while loans from Tk 251 to Tk 500 will carry a fee of Tk 10. Similarly, a Tk 15 fee will apply to loans of Tk 501 to Tk 1,000; Tk 25 for loans of Tk 1,001 to Tk 2,000; Tk 35 for loans of Tk 2,001 to Tk 3,000; and a maximum service fee of Tk 50 for loans ranging from Tk 3,001 to Tk 5,000.

Bangladesh Bank has strictly directed that, apart from the approved service fee, customers cannot be charged any interest, penalty, processing fee or any other additional amount. Even if a customer repays the loan before the stipulated 30-day period, no additional fee may be imposed for early settlement.

The entire process of disbursing and repaying the digital loan will be completed electronically. Unlike conventional lending procedures, customers will not be required to sign paper documents. Instead, banks will obtain customers’ consent through digital platforms and verify their identities using biometric authentication before approving the loans.