Smart Loan Against FD

MBL has been forefront on bringing technological driven digital product and services to enrich digital journey of our Customer. Instant FD opening through M-Smart (Mobile Banking application) has benefited thousands of customer of bank by saving their precious time and money by completely avoiding physical branch visit. Further simplifying and adding convenience to our customer, Loan Against FD feature have been embedded in M-Smart. This feature gives our customer hassle free, paperless and instant loan against FD with following features:

Features of the product

Particulars	Remarks
Product Name	Smart Loan Against FD(No separate scheme will be created in the system)
Loan Limit	80% of FD amount or 300000 whichever is lower
Currency	NPR Only
Eligibility	Retail customer without any existing Credit facility and Posting restrictions shall be eligible for M-Smart Loan against FD.
Disbursement/Recovery	Automated in to Principal Account of Customer.
Tenure	Maximum up to 1 year, Final Maturity of loan must be less than Maturity of FDR
Interest Rate	Base rate + 2% or Coupon Rate on FDR + 2% whichever is higher
Repayment Modality	Customer nominee account will be debited for Interest and Principal repayment. Interest payment on Monthly/Quarterly basis (Depends on type of deposit of FD accrued Interest) FD interest flow and LOAN interest flow has been synced. Bullet Payment (Principal on Maturity)
Penal	2% Penal to be charged on due amount in line with NRB directives FD shall be liquidated(Partial/Full)
Fee	Nil
Legal Document	Customer shall agree on Terms and Conditions listed in Application during request of loan. No separate legal documents will be signed.