Registering an active bank account is an important step while taking out a loan. This process of registration of a bank account is called the NACH (National Automated Clearing House) mandate. NACH mandate is a mechanism that allows the auto-debit of your loan EMIs (equated monthly instalments) on a pre-set date.
While you are repaying your loan, there are chances that your bank account details undergo any change. In such a scenario, it’s important to update your mandate so that your EMIs get paid without any delay.
For instance, Anu borrowed a loan from us, and while she was repaying her loan, she changed her company. Due to this change in her company, she’ll now have a new bank account in which she’ll receive her salary. With that in mind, she wants her EMIs to get deducted from the new account. In such a case, she should update or swap her mandate or bank account details to ensure that her EMIs get debited on time.
Here’s the list of benefits of updating your mandate
Auto-debit of loan EMIs
Your updated mandate allows the automated debit of your monthly instalments on a pre-set date. This facility allows hassle-free and on-time repayment of your loan.
Avoid overdue EMIs
If your bank account details are updated, the EMI gets deduced on the same date every month and hence, avoids any default. In this way, you’ll be able to avoid any overdue instalments.
Avoid penal charges
In case your EMIs are unpaid, you need to pay additional penal charges applicable to your overdue instalment. If your mandate is updated, you’ll be able to avoid any EMI default, which will help you to save from penal charges.
Maintain a healthy CIBIL Score
One of the important reasons why you should pay all your EMIs on time is to maintain a healthy CIBIL Score. If you update your bank account details, you won’t miss out on any instalments and will be able to maintain a healthy CIBIL Score.
Improves your loan eligibility
If your repayments are on schedule, you’ll have a good CIBIL Score. A healthy credit score helps you in improving your eligibility for future loans. This will also help you to get a loan at competitive terms and conditions.
In case you have an ongoing loan with Bajaj Finance and your repayment bank account undergoes any change, you can update or swap your mandate online.
You can use our customer portal – My Account on the web or our app and update your mandate easily without any branch visits. Click on the ‘Update Now’ button on this page to get started and manage your bank account details easily.
