October 4: Banks and Financial Institutions (BFIs) have come up with various products that can be used to make payments, to open a deposit account as well as to apply for a loan online to ensure physical distance during the COVID-19 crisis.

Customers’ growing attraction toward online banking started to increase after some banks recently digitalized the process of loan disbursement. Some banks have even started approving the loans applied online.

Banks, including Sanima Bank, NIC Asia Bank, Nabil Bank have brought products to the market that allow the borrowers to apply for a loan online. Sanima Bank stated that its effectiveness has started to be seen.

Keeping the customers’ convenience and security in mind, Sanima Bank has made an arrangement to fill the form for credit cards by visiting the bank's official website.

The bank has issued credit cards without any charges since September 22. Bikram Shrestha, digital banking chief of Sanima Bank, says that 162 people have already applied for credit cards online.

According to Shrestha, 20 credit cards have already been approved as of last Thursday depending on the loan amount and payback capacity.

“Among all applications till now, 55 had complete documentations. The files of the remaining applicants are also under consideration,” he told New Business Age, adding, “Under the Dashain scheme, the first 50 cardholders will get a free voucher worth Rs 500 for shopping and Rs 3000 for the Daraz online shopping portal.”

Shrestha believes that the digitalization in loans by the banks is an opportunity given by the coronavirus pandemic. He says that progress has been made in digital banking due to the pandemic.

Pointing out that it is necessary to make borrowers trust the fact that the demand for a loan can be made online, Shrestha believes that it is important for the government to start promoting and encouraging online loan applications.

NIC Asia Bank, which has introduced the facility to apply for ‘Super Chamtkarik Loan’ through Khalti digital wallet, has said that it has not been effective yet.

Arjun Khaniya, the head of the customer service department and the Assistant Information Officer of NIC Asia, believes that despite the launch of the product, it is still new for the customers and that they will need time to get used to it.

Under this loan scheme, the bank has brought an arrangement wherein the customers can apply for the ‘Super Chamatkarik’ home loan, car loan and business loan from any place at any time with the use of Khalti digital wallet.

Meanwhile, after connecting the Khalti wallet to one’s account, arrangement has been made to allow customers to make payments directly from their bank accounts when they make a purchase of goods or services through the wallet.

He says that many customers are interested in applying for this but it will take time to be effective as this product was launched recently.

“This is a new product in the Nepalese market. We expect its attraction to increase gradually. However, a lot of credit will be flowed on the basis of relationships. The loan is being disbursed only on the basis of the customers’ income and trust,” said Assistant Information Officer Khaniya.

Nabil Bank has also started the facility of getting loans from one’s phone. After this facility, salaried account holders can get a loan up to Rs 100,000 from their phones immediately.

Deputy General Manager of Nabil Bank, Manoj Gyawali, informed that there have been many requests for the loans now as this product was launched recently. “Nabil’s smart bank users will be able to use this facility. Customers’ can apply for the loan through the smart banking app. This kind of loan is made available for a short-term,” Gyawali said, “This facility may even be available for all banks in the future.”

The banks will not require any additional collateral to disburse the loan. It used to be a very tedious process to get a loan even when the customers had to be physically present. But now, the process of taking loans has been digitalized. However, bankers believe that this product is new to Nepal and will take time to be effective.