UCB to offer low-interest digital nano loans under BB scheme

United Commercial Bank PLC (UCB) has signed an agreement with the Bangladesh Bank to provide low-interest loans under the central bank's "Digital Nano Loan" refinance scheme.

Under the arrangement, UCB will use the Bangladesh Bank refinance facility to disburse Digital Nano Loans at a reduced interest rate through a fully technology-driven process.

The initiative aims to widen access to credit for people who remain outside traditional banking services.

Mohammad Mamdudur Rashid, managing director and CEO of United Commercial Bank PLC, and Md Iqbal Mohasin, director of the Financial Inclusion Department at Bangladesh Bank, signed the agreement at the central bank's headquarters in Motijheel, Dhaka recently, according to a press release.

Officials said they are optimistic that the Digital Nano Loan programme will help accelerate financial inclusion nationwide and contribute to improving the socio-economic conditions of low-income communities.

The initiative is designed to provide fast, transparent, and easily accessible loans through digital platforms.

Md Habibur Rahman, deputy governor of Bangladesh Bank, and Rup Ratan Pine, executive director, along with other senior officials from both organisations, were also present at the signing ceremony.