The signed mandate form must be submitted to the customer’s bank, as the bank handles its review and approval.
Specifically, your user’s bank is the sole authority responsible for reviewing, approving, and activating their mandate. Once the signed mandate form, their bank will verify the details provided, such as their account number, their payment frequency, and the debit amount. This is done in order to ensure accuracy and compliance with its internal policies.
After approval, the bank will activate it, enabling scheduled debits to be processed automatically according to the agreed terms. This step is crucial because, without their bank’s approval, the mandate cannot be enforced, leading to delayed or declined loans.
Also read: How to use Paystack for your loan repayments on Lendsqr