Bangladesh Bank is planning to introduce a new digital lending facility that will allow eligible customers to borrow up to Tk 10,000 for short-term essential expenses.

The facility, titled “e-Payment Credit,” is aimed at helping customers facing temporary financial difficulties while also promoting digital transactions.

Under the proposed system, eligible customers will be able to borrow between Tk 50 and Tk 10,000. However, the loan amount cannot be withdrawn as cash. Instead, it must be paid directly to designated billers or service providers through approved digital payment channels.

The loans can be used to pay utility bills such as electricity and gas, mobile recharge, education and medical expenses, travel costs, taxes and government service fees, loan or deposit instalments, and insurance premiums.

Banks will initially operate the facility on a pilot basis for at least six months. Following an assessment of the pilot programme, banks may launch the service commercially with approval from their respective boards.

The loan amount cannot be transferred to a customer’s bank account or mobile financial services account. The entire process—from loan approval and payment to repayment—must be completed digitally through secure systems.

Customers will have repayment periods of 7, 15 or 30 days. Instead of interest, banks will charge a fixed service fee.

For loans ranging from Tk 50 to Tk 250, the maximum service fee will be Tk 3 for seven days, Tk 4 for 15 days and Tk 6 for 30 days.

For loans between Tk 7,001 and Tk 10,000, the maximum service fee will be Tk 35 for seven days, Tk 70 for 15 days and Tk 130 for 30 days.

Customers who repay within the stipulated period will not have to pay any additional interest. No extra charge will be imposed for early repayment. However, a penalty may be charged for overdue payments, subject to a limit set by Bangladesh Bank.

To ensure transaction security, banks will be required to use measures such as one-time passwords (OTPs), two-factor authentication and multi-level security verification. Banks may also partner with mobile financial service providers, payment service providers and fintech companies to operate the facility.

The new lending system will remain subject to Bangladesh Bank’s regulations on loan classification, risk management, consumer protection, anti-money laundering and data security.

Bangladesh Bank expects the initiative to increase the use of digital payments while providing customers with easier access to small, short-term loans for urgent and essential expenses.