E-mandate is a facility that allows individuals to authorize automatic deductions from their bank account towards loan repayment. It is a digital way of approving payments through a mandate that authorizes the lender to deduct the loan amount directly from the borrower’s bank account on a specific date.
E-mandate in personal loans offers several benefits to borrowers and lenders, including convenience, flexibility, and security. This article will provide a detailed explanation of what e-mandate in personal loans is all about.
What is e-Mandate in Personal Loans?
E-mandate is a digital authorization from a borrower to a lender to deduct the loan amount directly from their bank account on a particular date. In simple terms, an e-mandate is an automated way of making loan repayments. It eliminates the need for borrowers to manually transfer monthly funds to repay their loans.
E-mandate can be set up through net banking, mobile banking, or by submitting a physical mandate form to the bank. Once the e-mandate is set up, the lender will automatically deduct the loan amount on the due date, reducing the risk of missed payments and late payment charges flowerstips.
Benefits of e-Mandate in Personal Loans
E-mandate in personal loans offers a convenient way of making loan repayments. Borrowers do not have to remember the due date or make a manual transfer every month. The e-mandate ensures that the loan repayment is made automatically on the due date, thereby reducing the chances of missed payments musicalnepal.
E-mandate offers flexibility in loan repayment. Borrowers can choose when the loan amount should be deducted from their bank account. They can also change the date or cancel the mandate at any time.
E-mandate ensures the security of loan repayment. It eliminates the risk of fraud or misuse of funds as the loan amount is deducted automatically from the borrower’s bank account on a specific date.
How to Set Up e-Mandate in Personal Loans?
Setting up e-mandate in personal loans is a simple process. The borrower needs to follow the following steps:
- Log in to the net banking/mobile banking app of their bank.
- Look for the option to set up an e-mandate for loan repayment.
- Fill in the necessary details such as loan account number, loan amount, loan tenure, and the date the loan amount should be deducted.
- Authorize the bank to deduct the loan amount automatically on the due date.
- Confirm the e-mandate setup by entering the OTP received on the registered mobile number.
- Once the e-mandate is set up, the borrower will receive an email/SMS confirming the same.
Note: If the borrower cannot access net banking/mobile banking, they can submit a physical mandate form to the bank to set up an e-mandate.
E-mandate in personal loans is a convenient, flexible, and secure way to repay loans. It eliminates the need for borrowers to remember the due date or make manual transfers every month. With e-mandate, borrowers can set up automatic deductions from their bank account towards loan repayment on a specific date.
This ensures that loan repayment is made on time, thereby reducing the risk of missed payments and late payment charges. If you are a borrower looking for a hassle-free way of making loan repayments, e-mandate is the way to go sccbuzz.
Personal Loan Agent
As a personal loan agent, it is essential to educate your clients about the benefits of e-mandate in personal loans. By doing so, you can help them set up an e-mandate, thereby reducing the chances of missed payments and late payment charges.
Additionally, as an agent, you can help your clients understand the process of setting up an e-mandate and guide them through the necessary steps. This will enhance your credibility as an agent and build trust among your clients.
It is also important to note that e-mandate is not just limited to personal loans. It can be used for other purposes, such as insurance premium payments, mutual fund investments, and credit card bill payments. As an agent, you can educate your clients about the various uses of e-mandate and help them set up the same for their needs dstvportal.