bKash, the leading mobile financial service in Bangladesh, partnered with City Bank to introduce a 'nano loan' service, targeting low-income individuals and small entrepreneurs. The service allows users to borrow small amounts instantly via their mobile phones, with repayment options integrated into the bKash platform.
According to a 2025 report by the Bangladesh Bank, the nano loan product has disbursed over 1.2 billion BDT in loans to more than 500,000 borrowers, with a repayment rate exceeding 95%. The loans range from 500 to 5,000 BDT, with a tenure of 30 days and a flat interest rate of 2% per month.
City Bank officials stated that the partnership aims to bridge the financial inclusion gap, as over 40% of Bangladesh's adult population remains unbanked. The service uses alternative credit scoring based on mobile transaction history, enabling access for those without formal credit records.
Industry analysts note that nano loans are part of a broader trend in digital lending across South Asia, with similar products in India and Pakistan. However, concerns about over-indebtedness and data privacy have been raised, prompting regulators to monitor the sector closely.
