You might have heard about “Buy Now Pay Later” plans for vehicles, gadgets, and real estate. But have you heard about it in bank loans? Maybe not! But it is a reality now. For the first time in Nepal, it is available within the digital payment system. F1Soft International has introduced the Buy Now Pay Later feature through FoneLoan where you can immediately get loans from your Mobile Banking App. And the interesting fact is, you can get an instant loan by just scanning the QR code of any merchant within the Fonepay network.
FoneLoan is providing small short-term collateral free loans to the bank’s customers through mobile banking apps. It means you do not need to visit the bank to get loans.
Know more about F1 Soft’s Foneloan product
FoneLoan is a digital financing product for banks to provide small short-term loans to the bank’s customers through mobile banking apps. F1Soft International introduced this product last year which was the first digital lending product in Nepal. There are five major commercial banks such as Nabill bank, Laxmi Bank, Mega bank, and Citizens bank which has been providing Foneloan (1 month model) service to their salaried and regular income customers.
Recently, Buy Now, Pay later (BNPL) feature has been introduced in Foneloan service through Kumari Bank. This service can be easily accessed by the foneloan eligible customers of Kumari bank by simply scanning the QR code of any Fonepay merchant and choose Buy Now, Pay Later. It means you can shop through any Fonepay Merchant’s QR code and access Foneloan’s Buy Now Pay Later feature. Be it for shopping, traveling to your dream destination, purchase of gadgets and equipment, or medical emergencies, banking customers can enjoy instant and hassle-free access to funds and pay later in equal monthly installment (EMI). With Buy Now, Pay later now you can attain financial freedom.
Get instant loans through QR code scan
F1Soft has enhanced the Foneloan service, enabling EMI loans as well as all credit payments through any Fonepay merchants QR code. Under this, Fonepay has introduced the “Buy Now Pay Later” service through Foneloan in the digital payment industry.This loan program allows you to get an instant loan without any collateral. It’s a nightmare to many of us even today while processing the loans but, Foneloan has made it possible to get a small loan based on the salary income and transaction pattern.
Gone are the days of visiting the bank to get loans. Moreover, there is no paperwork required to get the approval of the loan.
Getting loans through FoneLoan is easier and convenient as you do not need to visit banks physically and process all the paper works. Moreover, you can get loans from Rs 500 to Rs 200,000 as per the NRB’s regulations. Similarly, the loan tenure is valid from 1-12 months. This time can vary as per the bank’s discretion.
The repayment schedule is such that you can pay through two mediums:
- Either you pay the full amount within one month, or
- Repay within the loan tenure with Equal Monthly Installments (EMI)
In Buy Now, Pay Later feature, bank pays to merchant directly on behalf of the customer thus, the loan amount can be paid later in EMI. Moreover, Foneloan can also be availed from your mobile banking app and get an amount loaded directly into your account and Pay in EMI.
Who can get loans through Foneloan under “Buy Now Pay Later” feature?
Foneloan is a product of Fonepay that has been providing loans to banking customers under the Fonepay network. This new feature is providing loans to both existing and new customers. The existing customer group refers to salary account holders and regular deposit/income customers.
Similarly, probable customers can be:
- Customers with existing retail loans, and
- Minimum balance account holders
Kumari Bank becomes the first partner in F1Soft Buy Now Pay Later
Kumari Bank is becoming the first bank to provide loans under FonePay’s Buy Now Pay Later plan. It means you can get a loan from Kumari Bank using the mobile banking app of this bank.
Customers of Kumari Bank who are eligible for a Foneloan can use the Foneloan Buy Now Pay Later function in their mobile banking app to make credit purchases by scanning the QR code at any merchant that accepts fonepay QR payments.
Other partner banks for Foneloan service are:
- Nabil Bank
- Laxmi Bank
- Citizens Bank
- Mega Bank
You can use the mobile banking system of these banks and get instant credit through a QR code scan.
Buy Now Pay Later is growing in e-commerce industries in the whole world; Nepal is introducing it for the first time for petty expenses through financial institutions
Though this is a new concept in Nepal, BNPL has already got a wider acceptance in the world. Some international e-commerce brands like Affirm, Afterpay, Klarna, QuadPay, Splitit, Sezzle etc. have successfully run such types of campaigns. Even Paypal had set its own BNPL plans. Though EMIs were present for a long time in our country, BNPL was still a new concept for e-commerce. Following the craze of online shopping, Fonelaon has hit the market at the right time. It has introduced this BNPL service where the customers can shop without worrying.
Its robust decision analytics system designed by ExtensoData accesses the eligibility of borrowers under parameters set by bank such that the option for Foneloan in the mobile app appears only to the eligible ones.
How to get loan under F1Soft Buy Now Pay Later Plan?
First of all, you need to download the mobile banking app of the respective bank. You need to log in to your account and follow these simple steps:
- Login to your Kumari Smart app of Kumari Bank
- You must have registered to in Foneloan by verifying the link send to your email address
- Click on QR code icon on your mobile banking app
- Scan any Fonepay merchants QR code and choose “Buy Now, Pay Later” icon
- Enter the loan amount without exceeding the available loan limit.
- Now, EMI breakdown will be displayed. Once you confirm, CVV number will be send via sms.
- Finally, enter your 4 digit transaction PIN and complete the loan apply process.
In these simple steps, you can get Foneloan and pay in EMI for purchases. This service is not just convenient; rather it provides transparency of the loan status and EMI payment. You can use this service anytime and anywhere. Soon, e-commerce companies will join this plan and ease their customers. Moreover, other banks also would join Fonepay’s Foneloan system this campaign.
Let’s know about the metrics of FoneLoan
As of writing this article, already 5 banks have partnered with Fonepay to provide Foneloan through QR code. SImilarly, already 16000+ loans have been disbursed. Moreover, more than NPR 270 million loan amount has been disbursed.
With the introduction of the Buy Now Pay Later option in Foneloan, FonePay is disrupting the business of e-commerce and digital banking in Nepal.
The customers can get loans at an instant without collateral. The decision is based on decision analytics. Similarly, they can get microloans easily without any paperwork and other hassles.
Also read: Buy Now Pay Later (BNPL) Plans; How can Nepali E-commerce adopt this for better profitability?
The benefits of F1Soft Buy Now Pay Loan plans are amazing!
The banks can utilize Fonepay’s network to serve through BNPL plans and offer customer satisfaction. Moreover, this feature by Fonepay can increase the usage of mobile banking of the banks. It can help banks to grow in these amazing ways:
- The banks can initate digital lending services to ease their customers
- This can expand loan portfolio which is the main source of revenue generations for the banks
- Foneloan’s BNPL plan is fully automated which helps the banks to reduce operating costs including paper costs
Hence, Fonepay has emerged as the major player in making digital payments easier. In addition to that, it is changing the way of digital banking. Previously, getting loans from the bank was a hectic job since it needed a lengthy process with various paperwork. But now, it has made retail lending easier and more reachable. Even the marts and small online stores can use this system to attract more customers. Moreover, the customers do not need to check their balance more often before making any purchase decision.
F1Soft Buy Now Pay Later plan under Foneloan is all set to hit the Nepalese market. The banks, businesses, and customers are going to benefit a lot from this campaign.
