Short for Electronic Clearance Service, ECS is an electronic mode of transferring funds from your bank account to another. It is used financial institutions for making payments such as salary, pension, dividend interest, and deduction of EMIs for loans.
To avail an ECS Mandate, you need to inform your bank or lending institutions that authorizes it to deduct a certain amount for any purchases made. The ECS Mandate contains the details of your bank account, branch, and other account details. An ECS user can set a maximum amount that one can be debited from the account.
When you purchase anything on EMI from Bajaj Finserv you need to provide a signed ECS mandate, along with providing your KYC details and a cancelled cheque. A cancelled cheque is also taken by the lender to know that you are the actual owner of the bank account. Based on the bank account information shared in the ECS Mandate, a certain amount gets deducted every month as EMI until the end of the loan tenor.