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, designed exclusively for marginal Small and Medium Enterprises (SMEs). Small traders, shopkeepers, and grassroots entrepreneurs can now access up to BDT 50,000 within minutes.
As an SME-focused bank, BRAC Bank's launch of the Shafollo e-loan demonstrates its commitment to supporting smallholder business owners, including those in remote areas. Traditionally, marginal SMEs, the backbone of Bangladesh's economy, faced barriers to formal credit due to lengthy paperwork, complex agreements, and long waiting periods. Many had to rely on informal lenders, often at high costs that reduced earnings, while banks faced heavy manpower requirements and slow processing.
With special permission from Bangladesh Bank, BRAC Bank has digitised the loan process to bring formal credit directly to borrowers. Entrepreneurs no longer need to visit a branch or submit stacks of documents; only a National ID is required. Approved amounts are disbursed directly to suppliers, enabling timely purchases of stock and raw materials.
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Repayment has been made convenient, with multiple channels available including agent points, bKash, branches, and sub-branches. Borrowers can repay in easy instalments over six months.
Over 5,000 loans have been disbursed nationwide, including in Sherpur, Rangpur, Rajshahi, Mymensingh, Jamalpur, Satkhira, and remote char communities, with further expansion planned. Securing credit has now become a minute-long reality for many smallholders and market-town entrepreneurs.
Syed Abdul Momen, Additional Managing Director and Head of SME Banking at BRAC Bank, said, "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 greater convenience. This innovation will ease the day-to-day struggles of marginal SMEs and create pathways for growth. Our vision is to use technology and customer-centric products to expand financial inclusion across every corner of Bangladesh."
