Remita direct debit (DD) is a payment method where a customer authorizes a business to deduct funds from their account. Unlike one-time transfers, direct debit follows a standing agreement to pull funds based on specific conditions or schedules.
Lenders use direct debit to collect loan repayments automatically, reducing delays and eliminating the need for constant reminders. While similar to a debit card, direct debit offers a more structured, automated approach to collecting recurring payments.
Lendsqr supports direct debit for loan repayment, giving lenders an additional tool to recover funds efficiently. Remita direct debit, a service from SystemSpecs, is a CBN-licensed payment provider in Nigeria. Remita allows authorized deductions from a borrower’s bank account to settle outstanding loan balances automatically.
Lenders can enable direct debit through the Lendsqr’s platform to reduce loan delinquency and improve recovery. This integration helps build repayment discipline and strengthens the lender’s ability to enforce credit agreements.
To learn more, check out these additional resources on how direct debit works in Nigeria.