Bangladesh Bank has introduced a new policy enabling customers to obtain digital or e-loans of up to Tk 50,000 at a 9 percent interest rate for a maximum period of 12 months. The central bank issued the policy on Monday, allowing customers to apply and repay loans entirely through digital channels without visiting a bank branch.

According to the policy, any regular customer can apply for the loan using digital platforms such as internet banking, mobile apps, e-wallets, or mobile financial services. Defaulters will not be eligible. Banks must verify a customer’s credit information from other financial institutions before approval but cannot charge any fee for this verification. The entire process, from application to repayment, will be conducted digitally using biometric identification, OTP, and multi-factor authentication to ensure security. All customer data must be stored in data warehouses located in Bangladesh.

Before commercial rollout, banks are required to conduct at least six months of pilot testing. Upon successful completion and board approval, they may launch the service. Banks have also been instructed to take steps to enhance customers’ financial literacy.