Kathmandu. Kumari Bank Limited has launched Nepal’s first ERP integrated digital loan platform (realtime) in collaboration with IMS Software Pvt. Ltd. with an aim to take digital banking to a new height in Nepal.

Through this innovative initiative, the bank will provide collateral-free loans to its business customers through IMS’s ERP software. With this, the long paperwork process and the hassle of visiting the branch will be eliminated. The bank said in a statement that the entire process of loan application, approval, disbursement and payment process will be completed digitally.

Through a direct integration with the ERP system, the bank will evaluate creditworthiness of the businesses based on real-time data such as sales, turnover and holdings. This data-driven system provides financial access to businesses without the need for traditional collateral, helping them make quick and accurate decisions. Businesses using ERP can avail working capital loan up to Rs. 500,000 based on their performance, which can be repaid in equated monthly installments of 12 months. The bank plans to make the financial process simpler, faster and more effective by increasing the loan limit in the future based on the use of services, demand and directives from Nepal Rastra Bank.

This initiation is a reflection of Nepal Rastra Bank’s vision of digital credit expansion and enhancement of access to credit Kumari Bank towards innovation and financial inclusion, especially benefiting SME & SMEs.

The initiative is expected to further strengthen financial inclusion, targeting over 9 lakh small and medium enterprises (SMEs) who are making a significant contribution to Nepal’s economy. It is also expected to contribute positively to the promotion of entrepreneurship, expansion of business and overall economic activities.

With a nationwide network of 286 branches and 41 extension counters, improved banking experience and collaboration with technology partners, Kumari Bank has been at the forefront of digital financial transformation in Nepal and believes this initiative will set a new benchmark in credit access for SME and will continue to create more simple, affordable and differentiated services in the years to come.