E-Paicho Foneloan - Digital Lending Service

What is E-Paicho Foneloan?
E-Paicho Foneloan is a digital lending service offered by bank to provide small short-term loans instantly to bank’s customers through their mobile banking app.

Customer need to use bank’s mobile banking application to register and apply for E-Paicho Foneloan. Loan approval happens automatically and the loan amount is deposited to customer’s account instantly, with whole process completed within few minutes.

These pre-approved loans are available to banking customers deemed eligible by an automated analytics system as per the criteria set by the bank. Be it for cash emergencies, meeting regular needs or fulfilling ones wishes, E-Paicho Foneloan is readily and instantly available to banking customers, anytime anywhere.

What are the major benefits of E-Paicho Foneloan to customer?

Contact Less Digital Lending Experience: Entire lending process happens through mobile banking; No bank visit, No paper work, no hassle of conventional credit application process.

Instant Loan: All process of loan application, approval and disbursement done instantly at real time, within few minutes.

Collateral Free Loan: Lending based on analytical study of customer’s banking transactions; no collateral required

Micro Loans: Can apply even for small loan amounts, ranging from NPR 500 to 2 lakh.

What modalities of E-Paicho Foneloan are available?

E-Paicho Foneloan is available in following two modalities:

1. Repayment within 1 month

Customer can take loan and make the complete repayment within 1 month

2. Repayment in Equal Monthly Installments

Customer can take loan for 3,6, 9 or 12 months and make the repayment through equal monthly installments

What is the minimum/maximum loan amount available?

For 1 month model, the minimum loan amount is NPR 10,000/- and the maximum amount is NPR 200,000/-

For EMI model, the minimum loan amount is NPR 10,000/- and the maximum amount is NPR 200,000/-

However, loan limit for individual customer is determined by the analytics software, which shall be within the ranges mentioned above. A customer cannot take the loan amount higher than the limit assigned by analytics software.

What is the minimum / maximum loan tenure available?

For 1 month model, applicable loan tenure ranges from 1 to 30 days.

For EMI model, applicable loan tenures are 3 months, 6 months, 9 months, and 12 months.

However, applicable loan tenures for individual customer are determined by the analytics software, which shall be among the options mentioned above.

What is E-Paicho Foneloan– Buy Now Pay Later Model?

E-Paicho Foneloan Buy Now Pay Later model refers to using E-Paicho Foneloan to make credit payment through QR code transaction. A Foneloan customer can visit any merchant who accepts fonepay QR, make the purchase, then scan the fonepay QR using the mobile banking app. E-Paicho Foneloan customer sees two options in the mobile banking app, to i. Pay Now ii. Buy Now Pay Later. If Pay Now is clicked then customer’s bank account is debited and payment is made to the merchant.

If customer clicks Buy Now Pay Later, customer is routed to E-Paicho Foneloan system, where one can chose the loan modality & tenure. Loan is executed and the payment is made to the merchant instantly. Customer shall make the repayment to the bank later, within 1 month or in EMIs.

Where can E-Paicho Foneloan Buy Now Pay Later be used?

E-Paicho Foneloan Buy Now Pay Later model can be used to make payments to any merchant which accepts fonepay QR.

Who is eligible for E-Paicho Foneloan?
Currently bank is offering this service exclusively to individual customers who have payroll/salary accounts in the bank or have regular income deposited in bank’s account. Hence, this service is not applicable to all customers of the bank. However, it can be expanded in the future to include other customers as well.

Are all payroll/salary account holders eligible for E-Paicho Foneloan?
No. E-Paicho Foneloan uses an intelligent analytical system which studies the transaction history and other relevant factors of customers’ accounts in the bank and generates individual scores based on its analysis. Only those customers meeting the threshold score set by the bank will be eligible to apply for E-Paicho Foneloan.

What are the factors considered to determine a customer’s eligibility for E-Paicho Foneloan?
Among others, the main factors considered by the analytical system are average monthly salary/ deposit average monthly withdrawals, average monthly balance, continuity of salary/ deposit, variance in salary/ deposit, status of existing loans, history of previous loans etc.

Can an ineligible customer become eligible for E-Paicho Foneloan in the future?
Yes. The intelligent analytics system continuously scans all accounts categorized by the bank to be considered for E-Paicho Foneloan. Over a time period, if a customer’s banking transactions and other factors change positively based on the factors set by the bank, his/her score can improve and thus become eligible for E-Paicho Foneloan. However, the reverse scenario can also be applicable, eligible customer becoming ineligible in future due to reduction in transaction and the score.

How do I know if I am eligible for E-Paicho Foneloan?
E-Paicho Foneloan is available to customers through bank’s mobile banking app. Once logged in to mobile banking app, an eligible customer will see the E-Paicho Foneloan icon/banner on the dashboard. Ineligible customers will not have E-Paicho Foneloan icon in their mobile banking app.

Do I need to have a mobile banking subscription to avail E-Paicho Foneloan?
Yes. E-Paicho Foneloan is a service available only through bank’s mobile banking app. Please download your bank’s mobile banking app from Play Store or App Store and activate your mobile banking service if you haven’t already. Kindly contact the bank if you face any problems while doing so.

How is the loan settled?
On loan maturity date (payback date) or EMI repayment date, the principal amount plus applicable interest amount or EMI amount is automatically debited from the customer’s account and the loan/EMI is settled. Customers need to maintain the required balance in their account to settle the outstanding payable amount, otherwise the loan or EMI amount will go into overdue status. Daily interest, penal interest and late fees becomes applicable for loan/ EMI amounts that are overdue.

Can I choose the EMI payment date?

Yes, the application allows the customer to choose the EMI payment date, as per their convenience. However, the EMI payment date should be within 30 days from the date of loan initiation.

Do I need to pledge any collateral or submit any documents/paperwork?
No. E-Paicho Foneloan is a collateral free, paperless automated loan. The intelligent analytics system determines eligible customers and the credit limit and loan tenure available to each eligible customer.

Is prepayment of the loan allowed ?
Yes. If a customer has maintained balance in their account, loan amount can be paid before maturity date as prepayment feature is available in E-Paicho Foneloan.

Can I apply for another E-Paicho Foneloan, while my existing E-Paicho Foneloan is still in not settled?
No. You will have to completely settle your existing E-Paicho Foneloan first to apply for another E-Paicho Foneloan.

What are the charges involved with E-Paicho Foneloan?
To avail E-Paicho Foneloan service, customer will have to pay following charges to the bank:

  • Processing Fee
  • Interest on principal amount till maturity date
  • Late fee and penal interest charges in case of overdue loans/ EMI