Brac Bank has introduced 'Swipe Load', a financing solution for POS (card swipe machine) merchants in the country.
Swipe Load will allow businesses to get a quick and convenient working capital loan from Brac Bank on their monthly average usage of Brac Bank's POS machines in their outlets, reads a press release.
The loan is completely collateral-free for these businesses who use Brac Bank POS machines to process their payments.
This is the first-ever POS transaction-based financing solution by a bank in Bangladesh.
Syed Abdul Momen, Head of SME Banking of Brac Bank said, "Swipe Load will not only help businesses run smoothly by encouraging acceptance of debit cards and credit card payments but will also inspire our customers' transit to digital modes of payment."
A POS merchant, with more than a year of active POS transactions, can avail up to 6 times loan facility on their average monthly POS transactions under 'Swipe Load'.
The 'Swipe Load' loan tenure will be 12 months. The interest rate for this facility is 9 per cent for businesses owned by male proprietors and 7 per cent for female proprietors. Interest will be charged and deducted quarterly on the utilized amount of daily Swipe Load day-end balance.
This collateral-free loan can be used to finance the purchase of new inventory, clear supplier dues, pay staff salaries, etc.