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Jul 17, 2021

What is the Fone/Phone loan?

Fone or Phone Loan is an immediate credit facility extended by the banks & financial institutions  (BFI) to the eligible customers, via digital mode, for their urgent cash needs. As the name suggests this credit facility is provided by the BFI via directly crediting the loan amount to the customer’s account from which the customer will get money through mobile banking.  

As more banking customers are availing of mobile banking facilities in Nepal, BFI is also introducing new products considering these changing scenarios. This would not only reduce the customer’s precious time while applying for any loan for a smaller amount but also benefit the BFI by sweeping out their lengthy documentation works.

This fone loan is also known as Pay Day Loan.

Which are the BFI offering fone loans?

At present, the following banks are providing this facility:

  • Nabil Bank
  • Laxmi Bank
  • Kumari Bank Limited
  • Mega Bank
  • Citizens Bank

Who is eligible to apply for fone loan?

Currently, only the Individuals who are drawing a salary are eligible to apply for the loan. Few BFI are also providing this facility to the individual having savings accounts.

Are all payroll/salaried individuals eligible for a fone loan?

No. Once you apply for the loan, your credit points will be determined taking into account various factors. The method of determining the credit points is known as “Decision Analytics” . These credit points will determine the maximum credit amounts that you are eligible to apply for.

It may be noted that, for now, this credit point is not visible to you. However, you can determine whether you are eligible to apply for the particular loan amounts or not.

What are the factors considered to determine the eligibility for a fone loan?

The following factors are considered while applying for a fone loan:

  • The average monthly salary is drawn
  • Average monthly withdrawals
  • Average monthly balance
  • Continuity of Salary
  • Status of other existing loans (if any)
  • History of previous loans (if any)
  • Credit Rating
  • Variance in Salary drawn

What are the charges involved with the fone loan?

Generally, the following charges are applicable to avail of the Fone Loan:

  • Processing Fees
  • Interest amount
  • Late fee charges in case of overdue loans

 It may be noted that these charges may vary from individual bank to bank.

What is the maximum amount/limit you are eligible to apply for a fone loan?

At present, the range of the amount you can apply for is NPR 500 to NPR 2,00,000 only.

 Again, these limits of loan amounts may vary from individual bank to bank. 

What is the loan tenure? 

Currently, the loan tenure is ranging from 1 day to a maximum of 30 days.

Again, these tenures of the loan may vary from individual bank to bank. 

Is there any requirement for furnishing any collateral or submitting any documents while applying for the loan?

No. This is an absolutely collateral-free & paperless loan via a mobile banking channel. Hence, there is no requirement to furnish any collateral or submit any documents while applying for the loan.