Why It Is Important to Update Your Loan Mandate

A loan mandate is a NACH (National Automated Clearing House) instruction that authorises scheduled EMI debits from your registered bank account. Update it when you close the linked account, switch to a new account or move your salary, and check that the new mandate is active before the next EMI. If an outdated mandate causes a failed debit, the EMI stays unpaid and becomes overdue, can attract penal and bounce charges and is reported to credit bureaus.

• Update the mandate when you close the linked bank account, open a new one, change your income account, or when the mandate expires or is replaced.
• Update it in My Account or the app by selecting your loan, choosing the mandate option and completing the bank details and verification.
• Check that the new mandate is active before the next EMI, and keep enough balance in the linked account.
• A mandate update does not change your EMI due date and does not guarantee a successful debit.
• A failed debit leaves the EMI unpaid and overdue, and a new mandate does not clear an earlier overdue amount.
• An overdue EMI is reported to credit bureaus, so clear it through Make loan payments, and check the status before paying again.

A loan mandate is an instruction, registered through NACH (National Automated Clearing House), that authorises scheduled EMI debits from a designated bank account. It lets the authorised amount be collected from the linked account on the due date, provided the mandate is active and the other requirements are met. It needs updating when your bank account changes, for example when you close the old account, switch to a new primary account or receive your salary in a different account. If the old account stays linked, the scheduled debit may not go through, which can leave the EMI unpaid.

When should you update your loan mandate?

Your loan mandate should match the bank account you currently use for EMI payments. Updating it promptly after a change means that future debits are directed to the correct account. Common situations include:

• Bank account closure: You have closed the account linked to your mandate.
• New bank account: You want future EMIs debited from a newly opened account.
• Change in income account: Your salary or regular income now goes to another account.
• Change in repayment account: You no longer use the existing account for loan repayments.
• Mandate replacement: Your existing mandate is no longer valid or needs to be replaced.
• Failed EMI debit: A debit failed because the linked account is no longer available.

Complete the update before the next scheduled EMI where possible.

How does updating your mandate support timely EMI payments?

Updating your mandate keeps the EMI instruction aligned with the account you now use for repayment. When the new mandate is registered and the linked account meets the payment requirements, it reduces the risk of a debit failing because of outdated bank details. It does not guarantee a successful debit, because a payment can still fail if the account lacks funds, the registration is incomplete or another issue occurs. Updating the bank account on a mandate also does not change your EMI due date.

Keep the repayment account active and funded for each scheduled EMI.

You can update or swap the repayment mandate in My Account or the app, if the service is available for your loan. Keep your bank account details ready. Follow these steps:

1. Open My Account or the app and sign in using your registered mobile number and OTP.
2. Verify your details with your date of birth, where asked.
3. Go to Service and select the loan under Your Relations.
4. Open the mandate option and choose to update or swap the mandate.
5. Enter the details of the bank account you want to use.
6. Complete the verification and the mandate registration.
7. Check that the new mandate shows as active before the next scheduled EMI.

The OTP is confidential, so never share it with anyone.

What happens if your mandate is not updated?

An outdated mandate can cause a failed debit when the linked account is closed, inactive or otherwise unavailable. A failed debit leaves the EMI unpaid, so it becomes overdue and can attract penal charges and a bounce charge as set out in your loan agreement. The overdue status is reported to credit bureaus in the lender's regular reporting cycle, and a later payment does not remove the earlier entry.

To clear it, open My Account or the app, go to Service, select your loan under Your Relations, choose Make loan payments, then Missed instalments or Other overdues, and pay using UPI, net banking or a debit card. Check the payment status before paying again, because a manual payment and a delayed auto-debit can both go through.

Updating the mandate changes only the instruction for future debits. It does not clear an earlier overdue amount, applicable charges or a legal notice, so pay the overdue amount separately and answer any notice within the stated timeline. If you cannot pay in full, contact the lender early through Help and Support to understand the options for your loan. Any option is subject to the lender's assessment and is not guaranteed.