Collateral-free bank loans via mobile: who can get how much

The 'phone loan' service, which provides bank loans without collateral directly through a mobile app, is expanding. According to banks, 11 commercial banks are currently offering this service, through which eligible customers can get loans of up to Rs 200,000.

The banks offering the service include Rastriya Banijya, Agriculture Development, Nabil, Everest, Prabhu, Kumari, NMB, Citizens, NIC Asia, Machhapuchhre and Laxmi Sunrise Bank. Customers must log in to the bank's app and apply through the loan option; no separate documents need to be submitted. However, it is not certain that everyone who applies will get a loan.

According to bank officials, the system analyzes the past six months of account transactions and sets the loan limit on its own, so staff do not determine the amount. Depending on transaction history, loans ranging from Rs 500 to Rs 200,000 can be obtained.

Most banks require the loan to be repaid within one year, though NMB Bank allows up to two years. Agriculture Development Bank is launching the service this week, targeting salaried account holders in its first phase. Sudip Dahal, chief of the bank's credit business and treasury department, said the bank has around 2 million salaried accounts, including local-level staff and teachers. Some other banks are also preparing to start this service.