What is foneloan?
Foneloan is a digital lending service offered by the banks to provide small short-term loans instantly to its customers through their mobile banking app.
Customers need to use the bank’s mobile banking application to register and apply for foneloan. Loan approval happens automatically and the loan amount is deposited to the customer’s account instantly, with the whole process completed within a 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 one's wishes, foneloan is readily and instantly available to banking customers, anytime anywhere.
What are the major benefits of foneLoan to the customers?
Contact Less Digital Lending Experience: Entire lending process happens through mobile banking; No bank visit, No paperwork, no hassle of the conventional credit application process.
Instant Loan: All processes of the loan application, approval, and disbursement are done instantly at real-time, within a 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 foneloan are available?
Foneloan is available in the following two modalities:
Repayment within 1 month
Customers can take a loan and make the complete repayment within 1 month
Repayment in Equal Monthly Installments
Customers can take a 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 500/- and the maximum amount is NPR 100,000/-
For the EMI model, the minimum loan amount is NPR 15,000/- and the maximum amount is NPR 200,000/-
However, the loan limit for individual customers is determined by the analytics software, which shall be within the range set by the concerned banks. Based on the customers' transaction history, the limit to pre-approved loans shall increase.
What is the minimum / maximum loan tenure available?
For foneloan Payday Loan, applicable loan tenure ranges from 1 to 30 days.
For the foneloan EMI model and Buy Now, Pay Later model, applicable loan tenures are 3 months, 6 months, 9 months, and 12 months.
However, applicable loan tenures for an individual customer are determined by the analytics software, which shall be among the options mentioned above.
What is foneloan - Buy Now, Pay Later Model?
Foneloan Buy Now, Pay Later model refers to using foneloan to make credit payments through QR code transactions. A foneloan customer can visit any merchant who accepts fonepay QR, make the purchase, then scan the fonepay QR using their mobile banking app. Registered foneloan customer will see two options in the mobile banking app, i.e. to i. Pay Now ii. Buy Now Pay Later. If Pay Now is clicked then the customer’s bank account is debited and payment is made to the merchant.
If the customer clicks Buy Now Pay Later, the customer is routed to the foneloan system, where one can choose the loan modality & tenure. The loan is executed and the payment is made to the merchant instantly. The customer shall make the repayment to the bank later, within 1 month, or in EMIs.
Where can foneloan - Buy Now, Pay Later be used?
Foneloan Buy Now, Pay Later model can be used to make payments to any merchant which accepts fonepay QR.
Who is eligible for foneloan?
Currently certain banks are 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 foneloan?
No. Foneloan uses an intelligent analytical system that 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 foneloan.
What are the factors considered to determine a customer’s eligibility for 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, thestatus of existing loans, history of previous loans, etc.
Can an ineligible customer become eligible for foneloan in the future?
Yes. The intelligent analytics system continuously scans all accounts categorized by the bank to be considered for foneloan. Over certain time, 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 they can become eligible for foneloan. However, the reverse scenario can also be applicable, eligible customer can become ineligible in the future due to a reduction in transaction and the score.
How do I know if I am eligible for foneloan?
Foneloan is available to customers through the bank’s mobile banking app. Once logged in to the mobile banking app, an eligible customer will see the foneloan icon/banner on the dashboard. Ineligible customers will not have foneloan icon in their mobile banking app's homepage.
Do I need to have a mobile banking subscription to avail foneloan?
Yes. Foneloan is a service available only through the 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 become 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 first installment of EMI should be made within 30 days from the date of loan initiation.
Do I need to pledge any collateral or submit any documents/paperwork?
No. 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?
No. Customers set their own maturity date in case of foneloan’s Payday Loan (1 month model). The analytics system determines the loan tenure in the case of the foneloan EMI and foneloan Buy Now, Pay Later model. Prepayment of foneloan before the maturity date (payback date) or the tenure is not allowed.
Can I apply for another foneloan, while my existing foneloan is still not settled?
No. You will have to completely settle your existing foneloan first to apply for another foneloan.
What are the charges involved with foneloan?
To avail foneloan service, the customer will have to pay the following charges to the bank:
Interest on principal amount till the maturity date
Late fee and penal interest charges in case of overdue loans/ EMI
Still have queries?