No, you don’t. If you have an active mandate, you can reuse it as long as that mandate is still valid and the amount covers the new loan.
A mandate acts like a standing instruction. It is an agreement that allows your lender to debit your account when the loan is due. If the mandate hasn’t expired and the loan amount is within its limit, there’s no need to set up a new one. But if the loan you want is higher than what your mandate covers or if the mandate has expired, you’ll need to create a new one.
It speeds up approvals, especially for repeat borrowers. Lenders can rely on existing mandates for secure, hassle-free repayments, without slowing down disbursement.
Take for instance a borrower who previously authorized a ₦500,000 mandate for a loan that’s now fully repaid. A few months later, they apply for ₦300,000. Since the original mandate is still active and covers the new amount, the system approves it instantly without needing a fresh mandate setup. This speeds up disbursement and keeps the borrower experience friction-free.
Read further: GSI vs Direct Debit: Similarities and differences