city bank launches digital loan with bKash

Welcome to a new era of digital transformation in banking.

City Bank in collaboration with bKash have started offering a first-of-its-kind Digital Loan that will enable users to request and receive loans instantly through bKash.

This initiative has been launched for the first time in Bangladesh with the approval of Bangladesh Bank and this service aims to facilitate and expand financial access to the unbanked population and contribute towards the journey of financial inclusion.

City Bank’s instant digital loan will bring impactful changes to micro-entrepreneurs, marginalized people, students or absolutely anyone to meet their emergency personal or business needs.

Features

Loan amount: BDT 500 - BDT 20,000
Loan tenor: 3 months (repay with instalments)
Interest rate: 9% per annum
Interest calculation: daily
Processing fee: 0.575% (will be charged during loan disbursement).

FAQ

What is the minimum and maximum amount of Digital Loan I can take?
If eligible, you can take a Digital Loan ranging from Tk 500 to Tk 20,000.

What is the term of the Digital Loan?
Digital Loan is available for 3 months. You have to repay in 3 monthly instalments.

What is the interest rate for Digital Loan?
City Bank’s interest rate is 9% per annum, which is based on Bangladesh Bank guidelines.

If I take a Tk 1000 Digital Loan for 3 months, what is the amount of interest I have to pay?
For a Tk 1,000 Digital Loan for 3 months, you have to repay approximately Tk 15.

How frequently will interest be calculated?
Interest will be calculated on a daily basis.
This means if you repay early before the due date, you will save money through lower interest cost because the number of days for which your loan was due will be lower.

Is there a loan processing fee?
Yes, City Bank is charging a Digital Loan processing fee of 0.575% at the time of loan disbursement, which is allowed based on Bangladesh Bank guidelines. For a loan of Tk 1000, the Digital Loan processing fee is Tk 5.75.

Is there a penalty interest rate for late payments?
Yes, City Bank’s penalty interest rate for late payments is 2% per annum.

What will happen if I do not repay the Digital Loan?
City Bank will take necessary action against you as per Bangladesh Bank regulations, including reporting your information to the Bangladesh Bank.

Can I take two loans as the same time if I have sufficient loan limit?
No, you can only take one Digital Loan at a time. You have to fully repay a Digital Loan before taking another one.

Who is providing the loan? City Bank or bKash?
City Bank is providing the Digital Loan.
As a bKash user, you are requesting a loan from City Bank from the bKash App. City Bank’s Digital Loan will be disbursed into your bKash account and the repayment will be from your bKash account.

I am a bKash App user. Why am I not eligible for a Digital Loan?

The possible reasons are:

Your bKash account is not biometrically verified, and/or
Based on credit policy of City Bank, your bKash account is not yet ready for loan service. To qualify for taking a loan under the credit policy of City Bank, please keep using bKash more frequently.