In this paper, we first present a 6-point binary interpolating subdivision scheme (BISS) which produces a C2 continuous curve and 4th order of approximation. Then as an application of the scheme, we develop an iterative algorithm for the solution of 2nd order nonlinear singularly per-turbed boundary value problems (NSPBVP). The convergence of an iterative algorithm has also been presented. The 2nd order NSPBVP arising from combustion, chemical reactor theory, nuclear engi-neering, control theory, elasticity, and fluid mechanics can be solved by an iterative algorithm with 4th order of approximation.