BRAC Bank and bKash have introduced the country's first fully digital, collateral-free loan facility tailored exclusively for bKash merchants, providing small business owners with faster access to working capital when they need it.
Under the joint initiative, eligible merchants can access loans of up to BDT 50,000 based on their transaction history and usage patterns on their bKash merchant accounts. The entire process, from application to disbursement, is completed digitally, without collateral, extensive documentation or the need to visit a bank branch.
The initiative is expected to help small and medium-sized businesses meet immediate financing needs, expand their operations and manage working capital more efficiently. It could also encourage digital transactions and contribute to strengthening the country's cashless payment ecosystem.
A large segment of Bangladesh's small and medium-sized entrepreneurs remains outside the formal credit system. Lengthy procedures, documentation requirements and other formalities often discourage small entrepreneurs from seeking loans from financial institutions. Many consequently turn to informal lenders to meet business or personal financial needs.
The new digital merchant loan offers an alternative source of financing. Instead of relying on physical assets or conventional collateral, the facility uses merchants' digital transaction records on bKash to assess their creditworthiness.
Eligible merchants can apply for a loan with just a few taps through the bKash Merchant App. The funds can be used to purchase inventory, expand operations, meet seasonal demand or address other business requirements.
Md Shihab Raihan, proprietor of Samrat Shoe in Satkhira, was among the first merchants to use the service.
"Recently, I needed some money for my business. I already knew that a loan facility had been added to the bKash Merchant App, so I applied and received a loan of BDT 10,000," he said.
"Previously, whenever I needed money urgently for my business, I had to borrow from relatives or friends, which was quite uncomfortable. This facility will help me run my business more freely, as I can now access working capital whenever needed," he added.
Handicraft entrepreneur Rokeya Akter Arna, who has long used a bKash merchant account to accept customer payments, also recently obtained a loan through the app.
"I first heard about the digital loan facility when bKash and BRAC Bank launched it. So, when I recently needed additional funds to restock my inventory, I applied through the bKash Merchant App and received the loan immediately," she said.
"The whole process was completely digital-no paperwork, no collateral. It's amazing to think that my daily merchant transaction history was all it took to determine my eligibility. I've never accessed a loan this effortlessly," Arna added.
Ali Ahmmed, Chief Commercial Officer of bKash, said digital transaction data is emerging as an effective indicator of creditworthiness for small and medium-sized entrepreneurs.
"This new approach makes it possible to bring entrepreneurs into the formal credit system by analysing their transaction records instead of relying on assets," he said.
"bKash has a strong nationwide network of nearly 800,000 merchants, whose digital footprints continue to grow with every transaction. Our goal is to harness these digital footprints to make credit more accessible to merchants," he added.
As Bangladesh moves towards a more digital and cashless economy, the joint merchant loan initiative marks a shift in how small and micro-enterprises can access financing.
Small businesses have long played a vital role in the national economy, but many have struggled to obtain formal credit because of complex procedures, documentation and collateral requirements. By using transaction data to assess creditworthiness, the initiative could make formal financing faster and more accessible while helping grassroots entrepreneurs expand their businesses, strengthen resilience and contribute to economic activity.
