The interest rate of 'Nano Loan' is determined on a daily basis with the help of technology. As a result, customers can repay the loan even before the maturity date without any early settlement charges. In such a situation, they will have to pay interest for the number of days for which the loan has been taken. Borrowers are also informed through SMS before the loan repayment date.
Speaking at the event, Citibank Managing Director and CEO Mashrur Arefin said, “The best feature of digital nano loans is that we can provide loans to more customers than before through traditional methods. More importantly, we can now extend our banking facilities to marginal customers in rural areas where we do not have any branch or agent point.”
Kamal Qadir, Chief Executive Officer (CEO), bKash, said, “bKash has made bank loans accessible to the unbanked. This joint initiative has been taken to address the emergency needs of this community, which will also help in developing an effective ecosystem for cashless transactions. For example, a farmer no longer needs to stop farming due to lack of money to buy fertilizers, seeds, etc. This service will help him purchase raw materials, thereby ensuring consistent production. In this way, ‘Pay-Later’ will encourage and accustom customers as well as merchants to digital payments.”