Loan FAQ

Loan FAQ | bKash

I am seeing a loan icon in the bKash App, what is it? /What is loan? /What is the benefit of loan? Description?

The Loan service enables bKash customers to avail instant loan facility from Financial Institutions (e.g. City Bank) through bKash App. Customers do not require any physical documents or collateral to get loan instantly. A bKash customer can avail loan from BDT 500 to 50,000. The repayment amount will be automatically deducted from the bKash account balance on due date.

Automatic deduction of instalment means loan instalment amount will be automatically deducted from your bKash account balance on a specific date each month.

The Processing Fee is the fee charged for Loan services. Loan Processing fee is 0.575% on the loan amount (0.5% + VAT).

After I tap on “Loan” icon, it shows “Thank you for your interest. To get loan, maintain balance in your bKash Account and Make more transactions using Payment and Add Money”. Why is that?

Based on credit policy of the Financial Institution (e.g. City Bank), your bKash account is not yet eligible for Loan/Pay Later service. To become eligible for loan/Pay Later services, keep using bKash services like Add Money, Savings, Payment and other services more frequently and maintain balance regularly.

Loan Providing financial institution (e.g. City Bank) will determine your available loan Limit based on your bKash account status and account usage pattern.

As regulated by Bangladesh Bank, interest charged by Financial Institution may vary based on customer. The Applicable interest rate is shown in the bKash App during loan disbursement as per month basis, and the interest is accrued on a daily basis. Interest rate can be changed depending on financial institution.

The Financial Institution (e.g. the City Bank), will impose late penalty interest at 1.5% p.a. on overdue amount if you fail to repay your instalment within the due date. To avoid late penalty interest, please make sure you have enough balance available in your bKash account on due date.

I have not paid for the instalment of loan on due date. Why is my interest high?

The interest of Loan/Pay Later is calculated on a daily basis. If you are unable to pay for the instalment on due date, the daily interest will be added to your existing instalment amount. Also, a late penalty interest from the Financial Institution (e.g. the City Bank) will be Applicable on your instalment amount. To know the total payable amount including the interest, please see the Loan Details from your bKash App.

Yes, it is possible. You can select partial repayment to pay off any amount within the limit before the due date. Also, by selecting full repayment, you can repay the full amount of loan/Pay Later.

If I fail to pay my instalment on the due date, will it impact on my Loan eligibility and Loan limit?

If you are unable to pay the instalment on due date, a late penalty interest will be imposed on the instalment amount by the Financial Institution (e.g. City Bank). In case of your future Loans/Pay Later(s), the Financial Institution (e.g. the City Bank) will take this into consideration to make further decision. On the other hand, if you have a positive history of timely loan/Pay Later repayments, the Financial Institution may increase your loan limit.

According to the digital credit policy guidelines of the Financial Institution (e.g. City Bank), the instalment amount and the loan terms cannot be modified after you have availed the loan. But you can pay the entire outstanding amount at once or you can pay partial amount. In this case, your total due will be changed and next instalment amounts will be adjusted accordingly. You can view the revised instalments in Loan Details page of Loan option in your bKash App.

After the full/partial repayment of a Loan, can I take another Loan immediately?

You can take multiple loans within your available loan limit without repaying currently active loan. If you have remaining loan limit after full/partial repayment, you can take another loan.