Bangladesh Bank has proposed a new digital microloan scheme to help people cover sudden expenses such as electricity, gas, water and mobile bills. Under the draft policy the customers could borrow between Tk 50 and Tk 5,000 repayable within 30 days.
No interest will be charged on these loans. Instead, banks will be allowed to charge a fixed service fee based on the loan amount with the fee structure tiered according to the size of the loan and capped to prevent additional or hidden charges.
The entire process from application to approval, disbursement and repayment will be conducted digitally through mobile or digital banking platforms, removing the need to visit a bank branch or submit paperwork. Instead of signing physical documents, customers will verify their identity through biometric authentication and provide digital consent before loans are approved.
The scheme is still in the proposal stage. Bangladesh Bank is currently collecting feedback from the public and stakeholders before finalizing the policy. The final version is expected to clarify borrower eligibility, loan limits, repayment terms, data protection measures and procedures for handling defaults.
Once implemented, the initiative aims to give citizens a fast, paperless way to access small emergency loans for daily essential expenses.
