Bangladesh Bank has issued directives to introduce an online-based “e-loan” facility, marking a significant step towards expanding the country’s digital financial ecosystem. The initiative is designed to make banking services faster, more accessible, and fully remote, allowing customers to apply for, receive approval for, and obtain loan funds without physically visiting a bank branch.
According to a circular issued on Monday (11 May) by the central bank’s Banking Regulations and Policy Department-1, all scheduled banks have been instructed to implement the e-loan system across their digital platforms, including mobile applications and official websites.
Under the new framework, eligible customers will be able to obtain loans of up to 50,000 taka with a maximum repayment tenure of 12 months. The entire lifecycle of the loan—from application to disbursement and repayment—must be completed digitally, ensuring minimal manual intervention and faster processing times.
The central bank has also outlined interest rate conditions. While banks will determine market-based rates, the maximum customer-level interest rate will be capped at 9 percent if refinancing facilities are utilised. All fees, charges, late payment penalties, and early settlement costs must be clearly disclosed to customers in advance, with strict instructions that no additional charges may be imposed without explicit consent.
To ensure financial discipline and reduce credit risk, borrowers with existing defaulted loans will not be eligible for the e-loan facility. Banks are also required to review Credit Information Bureau (CIB) reports before approving any application.
Digital verification mechanisms form a key component of the system. Banks must use national identity verification, biometric authentication, and other approved electronic verification tools to confirm customer identity. Additionally, robust cybersecurity safeguards such as two-factor authentication (2FA), multi-factor authentication (MFA), and one-time passwords (OTP) must be implemented to secure transactions.
Each bank must develop its own internal policy framework for e-loan operations and obtain approval from its board of directors prior to launching the service. Institutions are also required to ensure adequate information technology risk management systems and cybersecurity preparedness.
Key Features of the E-Loan System
| Feature | Details |
|---|---|
| Maximum Loan Amount | Up to 50,000 BDT |
| Loan Tenure | Maximum 12 months |
| Application Process | Fully digital (app/website) |
| Interest Rate | Market-based; capped at 9% (with refinancing) |
| Eligibility Restriction | Defaulters not eligible |
| Credit Check | Mandatory CIB report review |
| Identity Verification | NID, biometric and digital verification |
| Security Measures | 2FA, MFA, OTP authentication |
| Disclosure Requirement | Full transparency of fees and charges |
| Approval Requirement | Bank board approval and internal policy |
The initiative reflects Bangladesh Bank’s broader push towards a cash-light, technology-driven banking environment aimed at improving financial inclusion and operational efficiency across the banking sector.