NMB Bank Limited has signed a tripartite agreement with CityTech Group and Smart Choice Technologies (SCT) to join the LOOP network as an issuer bank, giving its customers access to digital purchase credit and equated monthly instalment (EMI) services through the network. The agreement was announced in Nepal, although the available information does not specify when or where it was signed.
Digital credit and instalment facilities
Under the partnership, NMB Bank customers will be able to use the LOOP network to access purchase credit and EMI facilities. The arrangement brings the bank into the network in the role of an issuer bank, while CityTech Group and SCT are the other parties to the agreement.
Purchase credit and EMI are the two customer-facing facilities identified in the agreement. Purchase credit allows customers to access credit for purchases through the network, while an EMI facility enables instalment-based repayment. The announcement does not provide further details about how customers will apply for or use these services.
The partnership is intended to make both facilities available digitally through LOOP. NMB Bank said the arrangement would allow its customers to access the services through the network, extending the bank’s offerings to include digital loan and instalment options. The information released does not describe the specific steps customers will need to follow to access them.
Details of the agreement
The agreement is tripartite, involving NMB Bank, CityTech Group and Smart Choice Technologies. Its stated purpose is to bring NMB Bank into LOOP as an issuer bank and enable the bank’s customers to use purchase credit and EMI services through the network.
The announcement does not disclose the credit limits, interest rates, repayment periods, eligibility requirements or any fees associated with the facilities. It also does not identify participating merchants or explain whether the services will be available for particular product categories. Customers will need further information from the bank or the LOOP partners for details on those terms and on how the facilities will work in practice.
Likewise, no information was provided about the planned launch date or the reach of the services. The agreement establishes the partnership and describes the facilities to be offered, but the available details do not set out a rollout timetable or explain whether access will begin immediately.
What the partnership means for customers
For NMB Bank customers, the announced change is access to purchase credit and instalment options through LOOP. The bank’s participation as an issuer bank places it within the network’s arrangement for offering those services. The agreement therefore links NMB Bank customers with the network’s digital loan and EMI facilities, while leaving operational details to be clarified.
The partnership brings together a bank and two technology companies around a defined set of customer services. NMB Bank is joining as the issuer bank, and the stated outcome is that its customers will be able to access purchase credit and EMI through LOOP. Further information on availability, application procedures and the terms of borrowing has not been included in the announcement.
