How to get Tk 10,000 digital credit

Customers can now get up to Tk 10,000 in short-term digital credit from banks to pay utility bills, mobile recharges, education and healthcare costs, insurance premiums, taxes, government service fees, deposit instalments, tolls and tickets.

The new loan facility, introduced by Bangladesh Bank yesterday, will have a tenure of seven, 15 or 30 days, according to a circular issued by the central bank.

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To apply, customers must register through a bank-approved digital channel using their registered mobile number. They must then verify their identity with a one-time password (OTP) and two-factor authentication, multi-factor authentication or another secure method approved by the bank.

The facility will be available to eligible customers, but Bangladesh Bank has not set a universal eligibility criterion. Instead, banks will use alternative digital credit-scoring models and set credit limits based on customers’ risk profiles and their own board-approved policies.

Once approved, the credit can only be used to make eligible digital payments. The money cannot be withdrawn as cash, transferred to the customer’s bank account or added to a digital wallet.

Instead, the approved amount will be paid directly to the designated biller through an authorised digital payment channel.

The service fee will depend on the credit amount and repayment period. For credit limits of Tk 7,001 to Tk 10,000, the maximum fee is Tk 35 for seven days, Tk 70 for 15 days and Tk 130 for 30 days.

Customers must repay the principal and applicable service fee by the due date. For seven-, 15- and 30-day credit, the due dates are the eighth, 16th and 31st day respectively from the date of disbursement.

No additional interest, fee or prepayment or early-settlement charge can be imposed if the credit is repaid on or before the due date.

However, customers who fail to repay on time may face a daily penalty, subject to the limits set by Bangladesh Bank.