Citizens Bank Launches “Citizens QR Merchant Loan” Scheme
10th November 2025, Kathmandu
Citizens Bank International Limited (CBIL) has cemented its status as a leader in digital innovation with the introduction of the “Citizens QR Merchant Loan” scheme.
Citizens QR Merchant Loan
Announced on November 8, 2025, this pioneering digital loan facility is meticulously designed to provide convenient, fast, and transparent access to credit for its registered QR merchants. This initiative marks a significant milestone in the bank’s digital banking journey, transforming the traditional lending model into a fully online, data-driven process that directly supports the growth of small and medium-sized enterprises (SMEs).
A Data-Driven Approach to SME Financing
The core strength of the Citizens QR Merchant Loan lies in its utilization of the merchant’s own transaction history. By basing loan eligibility and quantum on verifiable digital activity, the bank bypasses the lengthy, documentation-heavy processes traditionally associated with SME lending.
Chief Credit Officer and Deputy CEO Suman Mulepati described the QR Merchant Loan as a “milestone in connecting lending solutions more efficiently with customers.” This efficiency is achieved by focusing on the consistency and volume of digital sales, offering a robust assessment model built on actual business performance.
Eligibility and Loan Structure
The scheme is specifically tailored to reward the bank’s loyal digital partners:
Eligibility: Businesses must have been registered as QR merchants with Citizens Bank for at least six months to be deemed eligible. This six-month window provides a reliable history of digital transaction behavior for accurate risk assessment.
Loan Quantum: Qualified customers can access financing of up to 25% of their average monthly QR transaction volume calculated over the preceding six months. This direct correlation ensures the loan amount is proportional to the merchant’s digital revenue-generating capacity.
Loan Limits: The loan amounts are structured to meet the working capital needs of SMEs, ranging from a minimum of NPR 50,000 to a maximum of NPR 500,000.
Repayment: Repayments are structured through monthly installments, making the scheme manageable and predictable for small business owners.
Fully Digital: Eliminating the Branch Visit
Perhaps the most disruptive and customer-centric feature of the Citizens QR Merchant Loan is its fully digital process. In a market often characterized by bureaucratic hurdles, this initiative stands out by allowing customers to:
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Apply for the loan online.
Receive loan approval online.
This seamless, end-to-end digital journey eliminates the traditional requirement of visiting a physical branch, saving valuable time and operational costs for busy entrepreneurs. This commitment to digitalization significantly enhances financial accessibility for SMEs, who often find it challenging to take time away from their businesses for loan processing. The bank’s conviction is that this initiative will directly help SMEs expand their businesses by providing quick access to necessary working capital.
Citizens Bank: A Track Record of Digital Innovation
The launch of the QR Merchant Loan is consistent with Citizens Bank’s recent history of innovation, a factor that contributed to the bank recently winning the prestigious “Bank of the Year 2024” award. The bank has demonstrated a strong focus on pioneering new digital products to cater to emerging market needs and specific customer segments.
Prior innovative services introduced by Citizens Bank include:
Nepal’s First “Citizens PhonePay Credit Card”: A virtual credit card launched in partnership with FonePay, showcasing the bank’s agility in leveraging payment network technology.
“Freelancer Savings Account”: A dedicated product tailored to the unique income flow and financial management needs of the growing freelance community.
Share Market Services via Mobile: The capability to directly access share application and beneficiary number services through the mobile banking app, simplifying capital market investment.
Cross-Bank Teller QR Services: An advanced feature enabling customers from other banks to conveniently withdraw cash at Citizens Bank branches using QR technology, fostering interoperability within the financial system.
Scale and Stability in the Nepalese Market
Citizens Bank’s continuous push for digital innovation is backed by a substantial physical and technological infrastructure. The bank currently serves a massive customer base of over 1.948 million customers. Its extensive national footprint includes 200 branches, 169 ATMs, 3 extension counters, and 74 branchless banking units spread across 61 districts of Nepal.
This vast network ensures that while the loan application process is fully digital, customers still have access to physical touchpoints for comprehensive service. The introduction of the Citizens QR Merchant Loan leverages this scale to democratize credit, making digital transaction data the new collateral for thousands of small business owners. This strategic move strengthens the bank’s partnership with the SME sector and further entrenches its leadership in Nepal’s rapidly accelerating digital finance landscape.
For More: Citizens QR Merchant Loan
