City Bank and bKash today jointly launched the new service "Pay-Later", a special collateral-free digital nano loan that facilitates payments with interest-free funds through the bKash app.  
 

Under the facility, customers can spend money using the service on the mobile financial service even if they do not have sufficient balance in their wallets.

This allows customers to buy a product or service and pay directly with the loan. No interest will be imposed if the loan is paid within seven days, according to a press release. 

Mashrur Arefin, managing director and CEO of City Bank, and Kamal Quadir, CEO of bKash, inaugurated the digital nano loan service at the head office of the private commercial bank in Gulshan of Dhaka.Customers can borrow Tk 500 and Tk 30,000 instantly.

To avail the loan, customers need to scan the merchant QR code or input the merchant number, insert the transaction amount, and select the Pay-Later option.

In the next step, the customers have to select between the interest free repayment within seven days and the repayment in six months.

For the seven-day interest-free repayment option, if a customer fails to fully repay within the tenure, the "Pay-Later" option will be converted into a three-month loan with a 9 percent interest per annum.

In the case of the six-month repayment option, customers need to pay 20 percent of the total payment amount upfront. 

The remaining 80 percent will be divided into equal instalments, which will have to be paid automatically on the specified date of every month. The interest rate will be 9 percent per annum. 

In both cases, a processing fee of 0.575 percent, including VAT, will be applicable.