A direct debit mandate is a formal authorization that allows you to automatically collect payments from a customer’s bank account for loan repayments. As a Lender, you are able to create a mandate to collect funds that were booked outside the Lendsqr ecosystem. This can be done by creating a mandate on the Lendsqr Admin console for the customer’s account.
For example, a lender offering monthly loans can use direct debit mandates to automatically collect repayments from borrowers’ bank accounts on agreed dates. This ensures timely payments without needing to remind the borrower each month, reducing defaults and improving repayment efficiency.
To activate a direct debit mandate the user has to follow the steps below:
- The lender or biller initiates the eMandate setup on the Lendsqr platform.
- The customer sends a ₦50 transfer from the bank account on which the mandate is being set up, to a designated NIBSS account number at Paystack-Titan. This transfer can be done via internet banking, mobile banking, or USSD.
- The customer must have at least ₦100 available in the bank account that will be debited after transferring the required ₦50 from the same account.
Transfers from mobile or internet banking
NIBSS Direct Debit Emandate Activation Account
Account: 9880218357
Bank: Paystack-Titan
You can transfer from your mobile app and internet banking
Click here to learn how to deactivate a mandate
Also read: You can now activate your direct debit mandates in 1 minute