MTB and Delivery Tiger launch instant digital loans for micro merchants

Mutual Trust Bank has partnered with courier and fintech company Delivery Tiger to streamline the loan process for small-scale sellers in Bangladesh, eliminating the need for physical documentation.

This digital lending solution offers micro-entrepreneurs, especially those trading online via platforms such as Facebook, the opportunity to secure loans without traditional paperwork. Impressively, loan approvals and disbursements can be finalised within a mere 30 minutes on the same day.

Bangladesh Bank has given the nod to the pilot project of this initiative, with a number of online sellers already benefitting from the loan scheme.

Historically, despite the government and Bangladesh Bank's efforts to bolster micro and informal entrepreneurs with loans, success has been modest. A significant number still grapple with accessing vital financial support. Primary challenges have been the absence of essential documents like trade licenses, which predominantly hampers home-based female entrepreneurs. Additionally, protracted and intricate loan application procedures have often discouraged small business proprietors from pursuing financial aid.

"This partnership has the potential to redefine the lending arena, offering an efficient, accessible, and data-centric lending model. It could set the precedent for upcoming banking methodologies," remarked Fahim Mashroor, CEO of Delivery Tiger.

On 17th October, a soft launch of the instant loan product was conducted, attended by representatives from both MTB and Delivery Tiger, encompassing MTB CEO Mahbubur Rahman and Mashroor.

Within this pilot digital lending initiative, any of the 20,000 online sellers affiliated with the Delivery Tiger network can effortlessly request instant loans via the Delivery Tiger app. Applications are promptly evaluated against set criteria using an automated credit scoring mechanism.

Upon approval, the loan sum is promptly transferred to the entrepreneur's bank account, with the entire procedure wrapped up in less than half an hour.

Mashroor commented, "This digital lending initiative by MTB is unparalleled in Bangladesh. It symbolises a landmark in the harmonious integration of banking and fintech platforms. Through Delivery Tiger, we liaise with thousands of petite online vendors."

"Our platform empowers these sellers to divulge their business metrics to banks. Armed with this data, banks are in a position to lend confidently. This data serves as both collateral and assurance. Such data-driven lending heralds the dawn of the next phase in banking," he concluded.