Yes, you can debit an account with Remita direct debit on Lendsqr. Lendsqr is fully integrated with SystemSpecs’ infrastructure, allowing seamless loan repayments directly from a borrower’s bank account.
This means that lenders can automate loan collections, and borrowers don’t have to manually initiate repayment for each loan cycle.
A borrower applying for a loan via a Lendsqr-powered app selects direct debit as their repayment method. On approval, their account is automatically debited on the repayment date with no manual input required.
For this to happen, the borrower must have tied a direct debit mandate as a repayment method when they applied for the loan initially.
For example, a micro-lender using Lendsqr wants to reduce default rates. By requiring borrowers to sign a direct debit mandate by Remita, loan repayments happen automatically, improving loan performance and reducing operational effort.
How account debits work on Lendsqr
For account debits to work, borrowers must authorize a direct debit mandate when applying for a loan. This mandate gives the lender permission to pull repayments directly from their bank account as scheduled.
If the borrower skips this step, the system cannot debit their account automatically. In that case, the borrower must repay through manual methods like bank transfers or USSD payments.
Read further: How to use Remita for your loan repayments on Lendsqr