Collateral-free digital loan limit thru bKash app raised to Tk 50,000

The collateral-free digital loan limit has recently been raised from Tk 30,000 to Tk 50,000, offered by City Bank PLC through the bKash app, in response to growing customer demand.

Launched in 2021 as a joint initiative between bKash and City Bank, the service has gained popularity for its convenience and efficiency. Nearly one million customers have availed loans more than 5.5 million times, totalling around Tk 28 billion.

Customers can apply for loans ranging from Tk 500 to Tk 50,000, with a maximum tenure of six months, by simply tapping the 'Loan' icon in the bKash app.

The entire process is fully digital and paperless, requiring just a few taps on the app, according to a press release.

Loan eligibility and sanctioned amounts are determined automatically, based on the user's transaction history and City Bank's credit risk assessment policy.

Customers who are not currently eligible for the service may qualify in the future by regularly using bKash features such as add money, savings, payments, and other services.

To apply, users must tap the 'Loan' icon in the bKash app, enter the desired loan amount within the limit approved by City Bank, and carefully read and agree to the terms and conditions.

They must then input their bKash PIN and tap and hold to instantly receive the loan amount in their bKash account.

Repayments are made in monthly instalments, automatically deducted from the user's bKash account on the due date.

However, customers may choose to repay the loan partially or in full at any time. In such cases, interest is charged only for the utilised period, and no additional fees apply for early repayment.