DHAKA, May 11, 2026 (BSS) - Bangladesh Bank (BB) today issued comprehensive guidelines for the commercial launch of "e-Loan" by all scheduled banks, introducing a standardized framework for fully digital lending as part of the country's broader transition toward a cashless economy and inclusive financial system.

The new directive, effective immediately, allows banks to provide 100 percent end-to-end digital loans, from customer onboarding and authentication to disbursement, monitoring and recovery.

The central bank said the initiative is intended to expand formal financial access among marginal and underserved populations by leveraging the growing penetration of internet connectivity, smartphones, mobile banking and digital payment platforms.

According to the circular issued today, the guidelines were formulated in response to rising customer demand for digital financial services and the rapid expansion of technology-based banking channels across the country.

Under the policy, all digital lending products must explicitly carry the term "e-loan" in their service names.

Banks will be permitted to provide loans of up to Taka 50,000 at a time, with a maximum repayment tenure of 12 months.

Customers must use bank-approved digital platforms and registered mobile SIMs, while authentication must be completed through one-time passwords (OTP) supported by two-factor authentication (2FA) or multi-factor authentication (MFA).

The guidelines specify that the entire lending cycle must remain fully digital, eliminating the need for physical documentation and manual processing. 

Instead of traditional signatures, banks will use biometric verification and digital consent mechanisms for loan applications and sanction approvals.

BB has prohibited banks and third-party service providers from storing customer biometric data, underscoring the importance of privacy and cybersecurity in digital financial operations.

To strengthen data governance, banks have been instructed to comply with the Personal Information Security Act, 2026, the National Data Protection Act, 2026, and the Cybersecurity Act, 2026.

In line with the country's cloud computing and cybersecurity frameworks, all customer and loan-related information must be stored in data centers physically located within Bangladesh.

The circular further stated that interest rates on e-loans will remain market-based. 

However, if banks utilize refinancing facilities under BRPD Circular 11/2022, the lending rate must not exceed 9 percent. 

Existing Bangladesh Bank policies relating to processing fees, early settlement charges, loan classification, provisioning, penal interest and write-offs will also apply to digital loans.

As part of risk management measures, banks must comply with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations during customer onboarding and account opening procedures.

Before disbursing loans, banks are required to verify borrowers' credit histories across banks, financial institutions and mobile financial services (MFS) providers under Section 27(AA) of the Bank Company Act, 1991. 

The directive also introduced a "concealment clause," under which any e-loan obtained by withholding credit information must be adjusted immediately if adverse Credit Information Bureau (CIB) findings emerge later.

The central bank has made a six-month piloting phase mandatory before commercial rollout. 

Following completion of the pilot program, banks must finalize their Product Program Guidelines (PPG), obtain board approval and notify Bangladesh Bank within 15 days of launch along with a detailed evaluation report.

For monitoring and reporting purposes, banks will have to submit monthly reports to the Statistics Department using the prescribed RIT template and quarterly reports to the Banking Regulation and Policy Department (BRPD) in the "Annexure-Ka" format.

Bangladesh Bank also announced temporary relaxation of real-time CIB inquiry requirements until its API-based automated CIB system becomes operational on a 24/7 basis. 

However, banks must preserve CIB reports after loan disbursement. No fees will be charged for e-loan-related CIB inquiries.

The guidelines were issued under Section 45 of the Bank Company Act, 1991, superseding all previous instructions related to digital lending.