In a groundbreaking collaboration, City Bank and bKash have launched ‘Pay-Later,’ a unique collateral-free digital nano loan service, marking a significant milestone in the financial landscape of Bangladesh. This innovative service allows customers to make interest-free purchases through the bKash app, even if they have insufficient balances in their accounts. Customers can repay the loan within seven days without incurring any interest charges.

The inauguration of the ‘Pay-Later’ service was led by Mashrur Arefin, Managing Director and CEO of City Bank, and Kamal Quadir, Chief Executive Officer of bKash, at the head office of City Bank. Senior officials from both organizations graced the launching ceremony with their presence.

Under this initiative, eligible customers can avail themselves of loans ranging from Tk 500 to Tk 30,000 instantly, combining both Pay-Later and Digital Nano Loans, subject to eligibility criteria.

The primary objective behind the introduction of the Pay-Later service is to accelerate financial inclusion and empower marginalized individuals to access essential goods and services. Customers can utilize the Pay-Later service at over 600,000 merchant points nationwide by shopping through the bKash app.

To access the loan, eligible customers need to scan the merchant QR code or input the merchant number, specify the transaction amount, and select the Pay-Later option. Subsequently, customers can choose between two repayment methods: interest-free repayment within seven days or repayment over six months.

In the 7-day interest-free repayment option, if the customer fails to fully repay within seven days, the Pay-Later loan will convert into a 3-month loan with a 9% interest per annum. Alternatively, in the 6-month repayment option, customers need to make an upfront payment of 20% of the total amount, with the remaining 80% divided into equal instalments. A 9% interest per annum is applicable in both cases, along with a processing fee of 0.575% including VAT.

With this joint initiative, Bangladesh enters the digital loan era, paving the way for convenient and accessible financial solutions for its citizens. Since its inception in 2021, this initiative has disbursed Tk 7.5 billion to more than 250,000 bKash customers, with a total loan count of approximately 800,000, signaling a significant uptake of digital financial services in the country.