Partial debit refers to a transaction in which only a portion of the available funds in a financial account is debited to cover the cost of a purchase or payment.
This can occur when the account balance is insufficient to cover the entire amount. In such cases, the transaction might go through for the amount available in the account, and the remaining balance will be covered using alternative payment methods.
How it works
At times, borrowers may find themselves lacking adequate funds in their debit cards to fulfill their loan obligations. The concept of partial debiting comes into play as a method that enables lenders to recover loan amounts from borrowers' accounts, even when the complete repayment sum is not available.
This approach is made possible through the utilization of advanced algorithms applied to customer accounts characterized by insufficient balances. While we cannot assure that borrowers will consistently meet their loan repayment commitments, this functionality underscores our commitment to establishing a platform that empowers lenders to effectively conduct their lending operations.
To illustrate, consider a scenario in which a borrower possesses a loan balance of N5000 yet holds only N3000 in their debit card. In such a case, the available amount of N3000 will be debited from the card, contributing towards a partial settlement of the loan. This process will be reiterated until the entire loan obligation is duly satisfied.