Access to credit has always been one of the biggest drivers of economic growth, from helping families manage emergencies to enabling small businesses to expand. In Nepal, borrowing traditionally relied on informal networks such as family members, local moneylenders, or community groups. These arrangements often lacked records and carried steep interest rates that placed heavy burdens on borrowers. With the arrival of modern banking, lending gradually became more organized and secure. Banks introduced credit systems, collateral requirements, and fairer interest rates, which gave both borrowers and lenders greater confidence. Even so, the process continued to rely heavily on paperwork and took considerable time.
Digital lending in Nepal is at an early but promising stage. Available at the time of writing with 10 banks (including Kumari Bank, Laxmi Sunrise Bank, Nabil Bank, Everest Bank, NIMB Bank, Citizens Bank, Prabhu Bank, NIC ASIA Bank, Machhapuchhre Bank, Agricultural Development Bank), the adoption is gradually introducing technology into a process that has been slow and paperwork-heavy for decades. The potential is significant, with nearly 90 percent of Nepal’s population connected through mobile networks (GSMA estimates), digital platforms give financial institutions a way to reach people that have historically had to look for alternate means of credit access.
For borrowers, this shift means more than convenience. A process that once required weeks of waiting, repeated branch visits, and stacks of documents can now be reduced to minutes. Lower paperwork costs benefit both banks and customers, while digital repayment options make managing loans far more practical. Most importantly, these tools are beginning to extend credit access beyond urban centers to unbanked households and small businesses, laying the groundwork for more inclusive finance.
Nepal’s digital lending future is beginning to take shape. A few early movers are already showing how technology can make borrowing faster, easier, and more inclusive. Two providers in particular, Foneloan and EasyLoan, are leading the way and proving that digital credit can scale responsibly.
Foneloan has become one of the most promising digital lending platforms in the country. It allows eligible customers to secure instant loans of up to NPR 500,000 directly through mobile banking apps, without the need for paperwork, collateral, or branch visits. As of now, Foneloan has more than 235,000 registered users and has facilitated over 382,000 loans worth more than NPR 10 billion through partnerships with around ten banks. What makes its growth remarkable is not only the speed but also the stability. Despite distributing billions, defaults remain low at 1.79 percent (NPL).
EasyLoan, introduced by eSewa, offers a different but equally important example. As Nepal’s first digital wallet to provide direct loans, it allows eligible agents and small business users to apply instantly from within the eSewa app. Loan amounts range from NPR 15,000 to 200,000, with modest processing fees. To qualify, agents must be KYC-verified, active on eSewa for at least six months, and meet criteria based on transaction behavior, sales volume, and repayment history. This approach opens doors for micro and small businesses, giving them access to credit that is both quick and transparent.
Digital lending in Nepal is still emerging, but its impact is already visible. Platforms like Foneloan and EasyLoan are proving that technology can make borrowing faster, fairer, and more accessible, reaching communities and businesses that were previously underserved. This is not just about convenience; it is about creating a financial ecosystem that empowers individuals, supports entrepreneurs, and builds trust in formal credit systems.
As mobile connectivity continues to grow and more institutions adopt digital tools, lending in Nepal is poised for a deeper transformation. What was once limited by paperwork, branches, and geography is now opening up to real-time access, personalized credit, and inclusive growth. The shift from traditional processes to smartphone-enabled lending is more than a technological upgrade—it is the next major transformation in Nepal’s financial landscape, offering opportunities for millions to participate fully in the country’s economic future.
Jul 28, 2025
May 11, 2023
