Dhaka Bank will soon be able to disburse small-scale personal loans within two hours of customers submitting their application.
As such, an account holder of the private lender will be able to borrow between Tk 10,000 to Tk 3 lakh without producing any paper documents.
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Dhaka Bank yesterday signed an agreement with CASHe Alliance Ltd to manage technology support to roll out the new product.
Emranul Huq, chief executive of the bank, said the lender would start disbursing loans in this way from next month on a pilot basis.
The pilot program will run until May, after which all bank customers will be able to take advantage of the service.
Payroll accounts maintained with the bank will initially be eligible for the loans, Huq said.
Around 60,000 payroll accounts are now managed with the bank.
Under the payroll account system, customers receive salaries from their employers directly through a bank.
Customers will not be required to provide collateral to secure the loans.
Instead, Dhaka Bank will review the credit status of loan applicants by checking their report from the central bank’s credit bureau.
The lender will disburse the loan using artificial intelligence (AI) technology, which will verify customer behavior through their social media accounts.
Additionally, the AI will analyze the types of smartphones and apps used by customers.
This will help the lender to know the attitude and aptitude of his clients.
“We will be able to identify the right clients to provide loans efficiently throughout the process,” Huq said.
The loan sanctioning and disbursement process will be completed within two hours, he added.
A dedicated mobile application has already been prepared and loan seekers will need to download it with their smartphone.
The new initiative will help customers reduce the time it takes to manage funds, as people currently have to wait at least five to seven days to get a personal loan.
In addition, customers will no longer need to visit bank branches to manage small loans.
However, customers must submit national ID information and upload their photo with the app, Huq said.