BRAC Bank’s 'Shafollo' boosts access to digital loans for the underserved

BRAC Bank's digital financing initiative, Shafollo, is expanding access to credit for underserved communities by offering fast, collateral-free loans with minimal documentation.

The programme is designed to address the long-standing credit exclusion faced by farmers, small traders, workers, and rural entrepreneurs.

By removing traditional banking barriers through a fully digital process, Shafollo enables borrowers to receive loans within 10 minutes -- an opportunity that was once out of reach for many marginalised groups.

Initially piloted in Sherpur, Shafollo is now active in over 15 regions, including Rangpur, Mymensingh, Jamalpur, Satkhira, and various Char areas. It allows individuals in remote areas to access loans ranging from Tk 500 to Tk 500,000. The application, verification, and disbursement processes are entirely digital, reducing the time and complexity of obtaining credit.

Customers can apply through BRAC Bank branches, SME offices, agent banking outlets, or from home via Shubidha, the bank's digital lending platform, and the Astha app.

Eligibility is determined using AI-based credit scoring, and funds are disbursed digitally. Repayments can be made through digital or traditional channels. Timely repayments automatically increase the borrower's credit limit.

The programme is particularly beneficial for farmers, who can now align their loan cycles with crop seasons -- borrowing before sowing and repaying after harvest.

To extend its reach and ensure responsible lending, BRAC Bank has partnered with corporations, multinational companies, and fintechs.

As of March 2025, over 7,900 loans have been disbursed through Shafollo. Beneficiaries have reported higher crop yields, increased incomes, and greater control over their finances.

The initiative is helping reduce dependency on informal lenders and contributing to a more inclusive and financially resilient Bangladesh.