City Bank-BKash service reaches 35 lakh borrowers with 31.9 million loans while maintaining a 0.5% default and write-off ratio
Digital Nano Loan Disbursement Tops Tk 10,000 Crore
Digital nano loans jointly offered by City Bank and bKash have crossed Tk 10,000 crore in cumulative disbursement. Since launching in December 2021, 3.5 million customers have taken 31.9 million loans. The combined default and write-off ratio stands at 0.5%, according to the institutions.
The cumulative disbursement of digital nano loans jointly offered by City Bank and bKash has exceeded Tk 10,000 crore, marking a significant development in Bangladesh's digital lending landscape.
Monday, 13 July Since the commercial launch of the service in December 2021, around 3.5 million customers have taken a total of 31.9 million loans through the bKash app.
According to the data, each customer has borrowed more than nine times on average. The service is currently available to more than 12 million eligible bKash users, many of whom previously had limited or no access to formal bank credit.
Eligible customers can receive loans through the bKash app in less than a minute without visiting a bank branch or submitting physical documents.
Nearly 100,000 customers use the facility each day. The average loan size is about Tk 3,000, while monthly disbursement has reached around Tk 900 crore. Borrowers mainly use the funds for small business needs, household expenses, medical emergencies and education costs.
According to the institutions, loans classified as defaulted or written off total Tk 53 crore, representing 0.5% of the cumulative Tk 10,000 crore disbursed. This indicates that approximately 99.5% of the loans have been repaid.
City Bank Managing Director and Chief Executive Officer Masrur Arefin said that while non-performing loans remain a major concern for the banking sector, the repayment performance of small-ticket digital loans has been comparatively strong. He added that the experience could offer useful insights for the broader banking industry.
//DBTech/DHE/SI//
