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How to enable E-Mandate Direct Debit for Lenders in Lendsqr
Updated
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Direct debit has long been a key feature within Lendsqr, allowing lenders to automatically collect repayments from borrowers without requiring repeated manual intervention. However, the traditional direct debit process, which relies heavily on bank-side approvals, can sometimes be slow and operationally demanding.
To address this, Lendsqr introduces E-Mandate, a faster and more streamlined approach to mandate activation. This feature allows borrowers to approve their mandates digitally with minimal friction, reducing turnaround time and improving the overall repayment setup experience.
This guide explains how E-Mandate works, how it differs from manual mandate activation, and the exact steps required to enable it within your admin console.
Understanding e-mandate direct debit
E-Mandate is a digital mandate activation process that simplifies how borrowers authorize automatic repayments. Instead of relying on manual documentation and bank processing, borrowers can complete the mandate setup through a guided digital flow.
Once activated, the mandate allows the system to automatically debit the borrower’s account when repayments are due. This ensures consistency in collections and reduces the risk of missed payments.
An important point to note is that this configuration applies globally. Once you select a mandate activation type, all loan products that use direct debit as a repayment method will follow the selected approach.
Mandate activation options
Lendsqr provides two options for mandate activation. Understanding how each option works will help you choose the one that best fits your operational needs.
Manual mandate activation
When the manual option is selected, borrowers are required to complete the mandate process themselves during the loan application flow.
They will be prompted to add their bank account details and either sign on-screen or upload a signed document. This information is then sent to the bank for processing and activation.
While this method is reliable, it can take longer due to the involvement of manual verification and bank-side processing.
E-mandate activation
When E-Mandate is selected, the process becomes significantly faster and more automated.
After successfully applying for a loan, the borrower receives an SMS with instructions on how to approve the mandate. As part of the process, the borrower is required to transfer a small activation fee to a designated account. Once this step is completed, the mandate is typically activated within 24 hours.
This method reduces friction, speeds up activation, and improves the borrower experience.
Access and permission requirements
Before attempting to configure mandate activation, it is important to confirm who has the appropriate permissions to update this setting.
Not all administrators may have access to modify system-level configurations such as mandate activation type. You should clarify with a super admin within your organization to determine exactly which roles are authorized to make these changes.
If you do not have the required access, request the necessary permissions or ask an authorized user to complete the configuration on your behalf. This step helps prevent unauthorized changes and ensures proper governance over critical system settings.
Step-by-step guide
Follow the steps below to find your organization’s current mandate activation type within your Lendsqr admin console.
Once you are logged in, navigate to the top right-hand corner of the interface and click on the settings icon.
Step 3: Check your current mandate activation type
In the Settings sidebar, under Platform, click System Configuration to expand the list of categories, then select System.
Type “Mandate Activation Type” into the search box. This filters the list down to the setting, showing whether your organization is currently on manual or emandate.
A note on this specific setting: at the time of writing, the Mandate Activation Type field is read-only from the admin console. It displays which activation type is currently active for your organization, but has no edit control, no toggle, and no click action, unlike most other settings on this page (it’s also marked with a lock icon, unlike editable settings nearby). This appears to be a genuine change from the flow this article originally documented, where lenders could switch between Manual and E-Mandate directly from an Edit panel here.
If you need to change your organization’s mandate activation type, contact [email protected] to confirm the current process, since it may now require assistance from the Lendsqr team rather than being fully self-service.
Completion and what happens next
After the mandate is activated, the repayment process becomes automated.
On each repayment date, the system will attempt to debit the borrower’s account based on the agreed schedule. This reduces the need for manual follow-ups and improves collection efficiency.
It is important to ensure that mandates are successfully activated before disbursing loans. This guarantees that repayment mechanisms are in place from the start of the loan lifecycle.
Common errors and how to fix them
While setting up and using E-Mandate is generally straightforward, there are a few common issues that may arise.
If your organization is on the wrong mandate activation type for your borrower base, this can lead to an unintended borrower experience. Check the current setting as described above, and contact [email protected] if it needs to change.
Borrowers not completing the E-Mandate process is another frequent challenge. This often happens when users do not follow the SMS instructions or are unaware of the required steps. To address this, provide clear communication and reminders to guide borrowers through the process.
Delayed activation may also occur. While E-Mandate is typically completed within 24 hours, delays can happen if the required steps are not fully completed. In such cases, confirm that the borrower has completed the transfer and allow sufficient processing time.
Incorrect or incomplete bank details can prevent successful mandate activation. If this occurs, the borrower may need to restart the process with accurate information.
If you believe your mandate activation type should be different from what’s shown in your settings, contact support rather than assuming there’s an unsaved change on your end, since the setting is read-only from the admin console at this time.
Best practices for using e-mandate
When implementing E-Mandate, it is important to ensure that borrowers clearly understand the process. Providing clear instructions and setting expectations around the activation timeline can help reduce confusion.
Monitor mandate activation rates to identify any drop-offs in completion. If many borrowers fail to activate mandates, consider improving communication or simplifying instructions.
Align your mandate activation method with your target audience. Borrowers who are comfortable with digital transactions may prefer E-Mandate, while others may require manual options.
Regularly review the performance of your direct debit system, including successful debits, failed attempts, and repayment consistency.
Conclusion
E-Mandate direct debit offers a faster and more efficient way to set up automated loan repayments within Lendsqr. By reducing reliance on manual processes and enabling digital mandate activation, it improves both operational efficiency and borrower experience.
Your organization’s mandate activation type applies across all relevant loan products that use direct debit. Once configured, the system ensures that repayments are automatically collected as scheduled. You can view which type is currently active from the System settings, and contact support to change it.
By confirming access permissions with a super admin, following the correct setup steps, addressing common errors, and applying best practices, lenders can streamline their repayment processes and improve overall collection performance.
