\u201cThe customer doesn\u2019t require any document, including salary certificate as the banks identify the eligible through the software,\u201d <\/strong>says Sharma, F1 Soft International.<\/p><\/blockquote>\nThe eligible customer gets the loans instantly as the loans are pre-approved.<\/span><\/p>\nThe concept might look similar to a credit card, but there are few distinct features.<\/span><\/p>\nThe customer can use the credit only while purchasing. But unlike a credit card, in FoneLoan, the loan amount is credited to the customer\u2019s saving account, which allows customer flexibility to use it for any purpose. Also, in terms of FoneLoan, the customer cannot take multiple loans, which happens in credit cards.<\/strong><\/span><\/p>\nEach FoneLoan needs to be settled completely before applying for another loan. With the resettlement process completed each time, there is no limitation in taking the loan repeatedly.<\/span><\/p>\nThrough this service, the customer can get a micro-loan starting from Rs 5,000 to 2,00,000.<\/span><\/p>\nResettlement<\/b><\/h3>\n The resettlement period for the FonePay loan is 30 days.<\/strong> According to the bank officials, the prepayment of the loan is not allowed, as of now. But, if they are willing to pay before 30 days, they have to set the date while applying for the loan.\u00a0<\/span><\/p>\nFor eg: if a person wants to settle the fee in 15 days, one must need to mention it while applying for the loan.\u00a0<\/span><\/p>\nIn case the loan is not completely settled on the date of maturity, the amount remaining to be settled will be considered overdue and the customer has to pay the daily interest and pay the late fee, in some cases.\u00a0<\/span><\/p>\n\u201cThe customer needs to pay Rs 300 per month as a late fee if the loan is not settled on the day of maturity,\u201d<\/strong> says Pradhan, Kumari Bank.<\/p><\/blockquote>\nSimilarly, the customers of Kumari Bank also need to pay Rs 300 per month as a late fee, according to Paudyal from the bank.\u00a0<\/span><\/p>\nNabil Bank has not charged any late fee, up to the present.\u00a0<\/span><\/p>\nSecurity<\/b><\/h3>\n Sending an <\/span>OTP<\/i><\/b> to the user’s <\/span>email<\/i><\/b> is the security measure applied in the platform. \u201cThis does identity verification and ensures a sense of security,\u201d says Sharma.\u00a0<\/span><\/p>\nThis service is available inside mobile banking hence one has to log in to their mobile banking security protocols to apply for the loan.\u00a0<\/span><\/p>\nA total of 1600 individuals have already taken loans from these three banks totaling Rs 25 Million till mid-day, March 1.\u00a0<\/strong><\/p><\/blockquote>\nFuture plans<\/b><\/h3>\n Though in the first phase, the target customers are limited to salaried people, FonePay and the banks are planning to extend the services to the other customer who has a passive source of revenue including rental income, pension, and others.\u00a0<\/span><\/p>\nAccording to the bank officials, as of now, they are analyzing the feasibility of such loans by analyzing the repayment behaviors of the customers.\u00a0<\/span><\/p>\nThey say that they will move towards the second phase and extend the eligibility to the above-mentioned criteria only when they ensure good transaction behavior in the first phase.<\/span><\/p>\n\u201cThough the bank has targeted the niche customer, we are working to educate the customer to repay their loan on time, become responsible so that the banks can keep a trust in them,\u201d <\/strong>says Sharma.<\/p><\/blockquote>\nApart from that, F1 Soft is also planning to extend the services to other commercial banks. \u201cWe are planning to introduce this platform in 6-8 banks by this fiscal year 2020\/2021. <\/span>We have a target to reach 20 banks by the end of the next fiscal year 2021\/2022,\u201d says Sharma.<\/span><\/p>\nREAD NEXT:<\/span> Why is the Internet So Costly in Nepal?\u00a0The Short Answer is \u201cExorbitant Taxes!\u201d<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"The lending landscape has been changing with the increasing adoption of digitization among banks and financial institutions. The traditional form of lending still prevails, especially in the higher transaction. However, BFIs have started a few products through which customers can get collateral-free, paperless, and faster loans in a smaller amount. One of the recent products…<\/p>\n","protected":false},"author":1082,"featured_media":68292,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[152,4],"tags":[1035,7372,7373,309,275],"yoast_head":"\n
FoneLoan: Collateral-free Short-term Loans | How it Works? How to Apply?<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n \n\t \n\t \n\t \n