Bangladesh Bank has moved to launch small digital loans to help people meet sudden, minor household needs when they are short of cash — such as paying electricity, gas, water or mobile-phone bills, or topping up a phone, especially near the end of the month.
Under the new arrangement, loans of 50 taka to a maximum of 5,000 taka can be taken through mobile or digital banking. The full amount must be repaid within 30 days. Crucially, no interest will be charged on the loan, though banks may take a fixed service fee based on the loan amount.
The small digital loan is set out in a draft Bangladesh Bank policy, which has been published to take the views of the public and stakeholders. A final policy will be issued after the feedback is reviewed; the facility is not launching yet.
Under the proposed structure, the service fee is capped at 5 taka for loans of 50 to 250 taka; 10 taka for 251 to 500 taka; 15 taka for 501 to 1,000 taka; 25 taka for 1,000 to 2,000 taka; 35 taka for 2,000 to 3,000 taka; and a maximum of 50 taka for 3,000 to 5,000 taka. So someone taking the maximum 5,000-taka loan would repay at most 5,050 taka within 30 days, with no other interest or charge.
Banks will not be able to collect extra money at will. Beyond the approved service fee, charging interest, penalties, processing fees or any other extra charge will be barred, and no advance-repayment fee may be taken from a customer who repays before the 30 days are up.
The whole process is designed to be digital: customers will not have to visit a branch or submit papers. Instead of a paper signature, the customer’s biometric identity will be verified and digital consent taken, after which the application, approval, disbursement and repayment will all be completed digitally.
The central bank says such a system will help build a less cash-dependent economy and expand the use of digital financial services, and could open a new avenue of financial inclusion for people who lack access to conventional bank loans — particularly for very small needs, where borrowing from a bank is time-consuming and costly.
Officials note there are risks too. If a customer borrows more than needed or repeatedly, even small loans can become a significant liability over time, so repayment capacity, past repayment history and any concurrent digital loans should be weighed carefully in approving loans. The scheme’s success, the central bank says, will depend not on how much money is disbursed but on how safely, transparently and appropriately people can use the facility.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report