Kumari Foneloan – Buy Now, Pay Later in Nepal: Instant Loan, Pay on EMI

Kumari Bank, a commercial bank in Nepal, has introduced a Buy now, pay later (BNPL), which allows customers to get an EMI loan instantly right from their mobile banking app.

Foneloan – Buy now Pay later

The concept of instant lending through a mobile banking app is nothing new. About a year ago, several banks, including Kumari Bank, had already launched the service, named ‘Foneloan’, in association with F1 Soft, a fintech company in Nepal. The service, however, previously did not offer loans on an IME basis; instead, the loans had to be repaid within 30 days.

But now, for the first time in Nepal, with Kumari Bank’s Foneloan Buy Now, Pay Later service, customers have the opportunity to take a loan up to 12 months and repay it via EMI, all without having to go to the bank.

Previously, we could do everything except take out a loan using the mobile banking app. This is how Foneloan was born. The response was yes, however, the loan repayment period was only 30 days. We therefore offer “Buy now, pay later”.

– Subash Sharma, CEO, F1Soft International

Who can use the Kumari Foneloan BNPL service?

The Kumari Foneloan BNPL service is currently only available to customers with a payroll / salary account. The bank said the service will soon be available for normal savings accounts.

For the EMI model, the customer can subscribe to a loan of a minimum of Rs. 15,000 and a maximum of Rs. 2,000,000. The customer can choose to repay the loan in 3, 6, 9 or 12 monthly installments. However, not everyone is eligible for a loan of up to Rs. 2 lakh.

The bank uses its own analysis software to determine the loan limit and term for each customer. The customer’s loan amount and term cannot exceed the limit set by the analysis software.

According to Kumari Bank, the software automatically analyzes each customer’s account, examining transaction history and other relevant details to give individual scores. Customers who meet the bank’s minimum credit score will be eligible to apply for a Foneloan.

The main factors that determine a client’s eligibility include average monthly salary / deposit, withdrawals and balance, salary / deposit continuity and variation, existing loan status, previous loan history, etc.

READ NEXT: Hamrobazar brings #TuBikcha! Campaign: get a chance to win a trip to Las Vegas and exciting freebies

How to use Foneloan Buy now, pay later?

A Kumari Bank customer must have a mobile banking subscription to benefit from Foneloan. You can download the app from the Play Store or the App Store and activate the mobile banking service.

Kumari Foneloan Buy Now, Pay Later service will soon replace the traditional way of taking small loans in Nepal due to the convenience of being able to get a loan and pay on EMI in seconds over the phone.

– Anish Tamrakar, Head of Digital Banking, Kumari Bank

The BNPL service can be used when paying for a product or service at any merchant that accepts Fonepay QR. When paying, simply scan the Fonepay QR code with the mobile banking app and select the “Buy now, pay later” option.

Then you can choose the loan type and the term after which the loan is executed and the payment to the merchant is made immediately. The customer must repay the bank within one month or in IME, depending on the loan modality.

Additional information on EMI regulations, interest and other charges

the the bank takes 0.75% of the loan amount as loan processing fees. EMI is calculated with 15% interest.

The EMI amount is automatically debited from the customer’s account on the EMI redemption date and the EMI is settled. However, if the customer’s account balance is insufficient, the EMI amount will be declared overdue.

Overdue EMI amounts are subject to daily interest, a 2% penalty interest rate, and late payment fines of Rs. 300 each installment.

READ NEXT: Khalti launches “Khalti my iPhone 13” campaign: here’s how you can win an iPhone 13


Source link

Comments are closed.