Brac Bank has introduced an innovative financial product called Tally Loan - 'Druti' to promote greater financial inclusion in Bangladesh.
This business loan is designed specifically for small traders, often overlooked by formal financial institutions, reads a press release.
With over eight million businesses lacking access to formal credit and secure banking services, Brac Bank is bridging the gap in the underserved market segment.
Tally Loan - 'Druti' is based on the traditional bookkeeping books of small traders called Tally Khata, which has been used in Bangladesh for over a thousand years.
Small business owners can now use their Tally Khata as proof of transactions and creditworthiness to apply for a bank loan. Brac Bank's Relationship Officers visit small businesses, assess their credit needs based on Tally Khata records, and fill out loan applications.
The bank also helps customers obtain necessary documents, such as trade licenses for loan applications.
Male entrepreneurs with at least two years of experience and women with one year of experience are eligible for loans up to Tk15 lakh without requiring any mortgage, which can be repaid within two years.
The service was then expanded to Narayanganj, a thriving location for small businesses. There are plans to further expand the service to the Cumilla and Narsingdi regions soon.
This loan has helped small business owners overcome mental barriers and access financing support, empowering them to break free from the cycle of debt from loan sharks.
Brac Bank's Deputy Managing Director & Head of SME Banking Syed Abdul Momen stated that their commitment to financial inclusion is redefining banking and creating a fairer and more equal world.
The loan sanctioning process is straightforward, with only Tally Khata records assessed and loans disbursed within 72 hours. The bank will continue to explore new ways to support grassroots business entities, he added.