An e-mandate is the digital payment service initiated by RBI and NPCI. It helps businesses to collect recurring payments without any human interventions in the given process. A mandate is a standing instruction given to the bank or any institution to automatically debit the amount from your bank account.

An e-mandate is a very easy way to all payments that are recurring in nature like SIPs, loan installments etc. This helps you to have a hassle-free debt payment from the lender. In this case, the borrower need not be reminded for the payments to be done and also the lender is stress-free that the payment will automatically be done by the borrower. It is a convenient way to manage all the payments for any business and individuals with many debt options.

Also Read: What is CASHe Personal Loan?

Advantages of e-mandate in CASHe are 

Increase in customer retention

Since e-mandates can be enabled by a one-time authentication process, the borrowers need not be disturbed by sending constant updates about repayment by the platform. The platform can easily identify that the borrower has updated the e-mandate

Lesser friction in payments

Typically on a platform a borrower will have to log in and then pay the installments for the debts that are availed by the borrower. In this case, the auto-debit option makes it easy for the customer to pay the installments without any processes and hence it is smoother.

Reconciliation

In the case of an e-mandate no manual payments are made and the amount that is debited has been generated by the system itself. This helps in the process of reconciliation.

Also Read:How long does CASHe loan approval take?