Why was I charged a little above the loan repayment amount?

Imagine a borrower who took a ₦50,000 loan and the due repayment amount is ₦55,000. When they initiate repayment via their Lendsqr-powered loan app, they notice that ₦55,050 was deducted instead of exactly ₦55,000. This usually leads to the question: “Why was I charged more than expected?”
The additional ₦50 is a processing fee charged by Remita, the payment provider used to process the repayment. Remita (and other processors) charge a small transaction fee to cover the cost of securely handling repayments. This fee is added automatically and deducted alongside your loan repayment.

• Amount due: ₦55,000
• Processing fee (Remita): ₦50
• Total charged: ₦55,050

This fee is paid to the payment processor and not to Lendsqr or the lender.

Tip: To avoid failed payments, always ensure your bank account has slightly more than the repayment amount enough to cover both the loan and the processing fee.