BRAC Bank launches country’s first instant e-loans for marginal SMEs

BRAC Bank has launched the country’s first instant digital financing, Shafollo e-loan, for marginal Small and Medium Enterprises (SMEs) as stated in the press release.

Small traders, shopkeepers, and grassroots entrepreneurs can now access up to BDT 50,000 in minutes.

As an SME-focused bank, pioneering the country’s first e-loan exclusively for SMEs reflects BRAC Bank’s resolute commitment to the smallholder business owners operating in the remotest parts of the country.  

Traditionally, marginal SMEs, the backbone of Bangladesh’s economy, have been excluded from formal credit. Lengthy paperwork, complex agreements, and weeks of waiting created barriers to access. In the meantime, many had to rely on informal lenders, often at high costs that eroded their earnings. On the bank’s side, each loan meant heavy manpower, costly manual processes, and delays that further limited outreach.

With special permission from Bangladesh Bank, BRAC Bank designed the Shafollo e-loan model to bring formal credit directly to the fingertips of those who need it most. Borrowers no longer need to visit a branch or shuffle stacks of documents; they need only their National ID. Within minutes, BRAC Bank disburses the approved amount straight to suppliers, ensuring that smallholders and merchants can buy stocks and raw materials on time and keep their businesses moving forward. 

Repayment has also been made seamless. Entrepreneurs can choose the channel most convenient to them — agent points, bKash, branches, or sub-branches — and spread payments across six months in easy instalments.

Over 5,000 loans have been rolled out nationwide including Sherpur, Rangpur, Rajshahi, Mymensingh, Jamalpur, Satkhira districts and remote char communities, with further expansion underway. In villages and market towns, securing credit without delay has become a minute-long reality.

Syed Abdul Momen, Additional Managing Director and Head of SME Banking at BRAC Bank remarked: “Shafollo e-loan reflects BRAC Bank’s commitment to making finance truly accessible for grassroots entrepreneurs. By digitising processes, we can deliver loans instantly, at lower cost, and with far greater convenience. This innovation will not only ease the day-to-day struggles of marginal SMEs but also create a pathway for them to grow and contribute more strongly to the economy. Our vision is to use technology and customer-centric products to expand financial inclusion across every corner of Bangladesh.”

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