Can you imagine a world where you cannot make recurring payments in an instant? No! Thanks to E-Mandate, convenience and fast payments have become an integral part of our lives. NPCI (National Payments Corporation of India) introduced this electronic payment system. This blog helps you understand the meaning of E-Mandate, how it works, its types, benefits, how to apply for it, and enable it – keep reading!
E-Mandate, short for electronic mandate, is a digital authorisation given by an individual to allow a service provider to deduct payments from their bank account on a recurring basis. It eliminates the need for physical paperwork and manual intervention, making it a more efficient and streamlined process. E-Mandate is used for recurring payments covering loan EMIs, utility bills, insurance premiums, subscriptions and more.
To understand how E-Mandate works, let us take a look at the following steps:
Depending on the transaction, E-Mandate is categorised into two types:
1. Credit E-Mandate
Payments from other sources can get automatically credited to your account. This is especially helpful if you own a business. You can also use this to auto-credit any loan, monthly interest of Fixed Deposit, etc.
2. Debit E-Mandate
If you have a loan, have invested in mutual funds through SIPs, you must have used debit E-Mandate already! Here, an agreed amount gets automatically debited from your account. Debit E-Mandate is beneficial for making payments on time.
The following points highlight the benefits of E-Mandate:
E-Mandates offer a hassle-free way to authorise recurring payments, eliminating the need for manual intervention.
With E-Mandates, your payments are deducted automatically on the designated due dates. This ensures timely settlements and avoids late fees or penalties.
E-Mandates use encrypted channels and secure platforms, protecting personal and financial information during the authorisation process.
E-Mandates reduce administrative costs associated with manual payment processing, such as printing and mailing physical documents.
E-Mandates provide the flexibility to set up recurring payments for various frequencies, payment amounts, and durations.
To apply for an E-Mandate, follow these general steps:
Step 1: Select a service provider that offers E-Mandate facilities for the desired recurring payment.
Step 2: Provide the necessary information and complete the application process.
Step 3: Review and authorise the E-Mandate by providing consent through the designated digital platform.
Once authorised, the service provider will start deducting payments from your bank account as per the agreed terms.
Before you start the E-Mandate process, make sure you meet the following eligibility criteria:
To enable E-Mandate, you need to fill out an application form and furnish the required details. The specific steps may vary slightly based on the service provider or bank.
E-Mandate has helped simplify recurring payments by providing convenience, security, cost savings, and flexibility. Opting for E-Mandates ensures timely payments of your EMI on loans and streamlines financial obligations. For example, if you get a Personal Loan for additional financial support from Poonawalla Fincorp at attractive interest rates, you can set up debit E-Mandate to pay your monthly EMIs. This way, your loan journey becomes smooth and convenient.
The E-Mandate process involves electronically authorising a service provider to debit funds from your bank account for recurring payments. It typically involves providing your consent, and your bank account details, and signing an electronic mandate form.
The cost associated with E-Mandate varies depending on the service provider or lending institution. Some may charge a nominal fee for setting up or processing E-Mandate, while others may offer it as a free service. It's best to check with your lender for any applicable charges.
To cancel your E-Mandate, you should contact your bank or financial institution and follow their specified process for revoking or cancelling the E-Mandate. This may involve submitting a written request, visiting a branch, or using online banking facilities.
The maximum amount for E-Mandate transactions can vary depending on the policies and limits set by your financial institution. It's advisable to check with them directly for the specific maximum amount allowed for E-Mandate transactions.
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply
When it comes to credit reports and scores, CIBIL (Credit Information Bureau India Limited) is a prominent name in India. CIBIL collects and maintains the credit information of individuals and assigns them a credit score.
India, known for its rich cultural heritage and grand celebrations, is a land of diverse traditions and vibrant wedding culture. Destination weddings have gained huge popularity among young couples looking for a unique yet memorable way to get hitched. With its breathtaking landscapes, magnificent architecture, and warm hospitality, India offers a plethora of options for couples seeking a dream wedding destination.