How To Update Mandate For A Business Loan

A business loan mandate is an authorisation that allows scheduled EMI payments to be collected automatically from a registered bank account. It links the loan repayment instructions to the bank account provided by the borrower, allowing eligible EMIs to be deducted on their scheduled due dates without a separate payment instruction for each instalment. If the bank account used for repayment changes or is no longer active, the mandate may need to be updated with the new account details. Keeping these details current can help reduce the risk of a failed EMI deduction due to outdated bank information. A mandate is separate from the loan account and its repayment terms. Updating the mandate only changes the bank account used for eligible future deductions. It does not change the loan amount, repayment obligation, or any existing overdue amount.

When should you update your business loan mandate?

You should consider updating your business loan mandate when the bank account linked to your EMI repayments changes or can no longer be used for scheduled deductions.

Some situations where an update may be required include:

• You have changed the bank account used for business loan repayments.
• The existing account is no longer active or available for EMI deductions.
• You want scheduled repayments to be made from another eligible bank account.
• Your existing mandate or bank details are no longer valid.
• You have been asked to update your repayment details as part of the servicing process.

Updating the mandate in advance gives the new details time to go through the applicable registration or verification process. The current service information states that customers can update business loan bank details through the service portal or app.

If an EMI is already overdue, changing the mandate should not be treated as a replacement for clearing the overdue amount. Review the account separately and use the applicable repayment option.

You can update the mandate linked to your business loan online if you need to change the bank account used for EMI deductions. The process requires you to select the relevant loan account, enter the new bank details, and complete the required verification. You can initiate the update through the Bajaj Finance service portal or App, depending on the available option.

Through the Bajaj Finance service portal

Follow these steps:

1. Open the Bajaj Finance service portal.
2. Sign in using your registered mobile number and verify the OTP.
3. Verify your details using your date of birth.
4. Select the business loan account for which you want to update the bank details.
5. Enter the required information, such as the account holder's name, bank name and IFSC.
6. Select the available mandate registration process.
7. Complete the process as instructed on the portal.

Through the Bajaj Finance App

You can also use the app to access the mandate management service.

1. Open the Bajaj Finance App and sign in.
2. Go to the Mandate Management section.
3. Select the relevant business loan account.
4. Enter the required bank account details.
5. Select the available registration process.
6. Complete the required authorisation or verification steps.

The currently published service process lists the registered mobile number, OTP, date of birth, business loan account and new bank details as part of the online update journey. The exact screens or available registration options may vary by service flow.

What happens after you update the business loan mandate?

After you submit a mandate update request, the new bank details may be subject to the applicable registration and verification process before they can be used for scheduled EMI deductions. A mandate update is intended to support future scheduled deductions. It does not automatically remove an existing overdue amount or reverse applicable charges.

Use the following checks after submitting the request:

• Confirm that the request has been submitted successfully.
• Check whether any further authorisation or verification is required.
• Monitor the mandate status through the available service channel.
• Keep sufficient funds in the applicable repayment account.
• Check your loan account around the EMI due date.
• If an EMI becomes overdue, review the outstanding amount and make the applicable payment instead of waiting for the mandate update alone to resolve it.

The key point is that submitting an update request and completing the mandate registration are not necessarily the same event. Until the new mandate is successfully registered and becomes applicable, you should continue to monitor your loan account and repayment status.

Can updating the mandate prevent missed business loan EMIs?

An updated mandate can help ensure that scheduled business loan EMIs are deducted from the correct bank account, provided the new mandate is successfully registered and sufficient funds are available on the due date. If a mandate is not updated and the existing account cannot support the deduction, an EMI may remain unpaid and applicable charges may arise. Continued overdue payments can also affect the borrower’s CIBIL record. Updating the mandate before the next EMI is due can help reduce the risk of deduction failures. However, if an EMI is already overdue or a notice has been received, updating the mandate does not clear the outstanding amount. The account should be reviewed separately.