Direct debit has been a convenient feature in our system for some time now. While you can refer to our previous articles for more details, we acknowledge that the traditional direct debit process involving banks can be time-consuming. We are excited to introduce E-Mandate, a feature that allows borrowers to automatically activate their mandates, streamlining the process for both lenders and borrowers.

Steps to Activate E-Mandate Direct Debit:

  1. Login to the Lendsqr Admin Console

  1. Click the settings icon and click on System Configurations

  1. Under System Configuration, find and click on "Organization Settings."

  1. Look for the "Mandate Activation Type" option and click on "Edit."

          



  1. Choose your preferred option for mandate activation

Once you've chosen your preferred option, save your changes. All loan products with direct debit as a repayment method will now use this method


If you select "Manual," borrowers will be prompted during the loan application process to add an account for mandate creation. They will then manually sign on-screen or upload a document. This information will be sent to the bank for activation.


If you choose "E-Mandate," borrowers will receive an SMS after successfully applying for the loan, guiding them on how to approve the mandate. They will need to transfer a 50 fee to the provided account, and the mandate will be activated within 24 hours.


6.    Completion:


Once the mandate is activated, lenders can proceed to disburse the loan, and the system will automatically debit the users when the loan is due.

By following these steps, lenders can efficiently enable E-Mandate Direct Debit, offering a quicker and more user-friendly experience for both borrowers and lenders.