Use-case scenario — Regional NBFC
Automating EMI Collection Across a Growing Borrower Base
An illustrative regional NBFC verifies each borrower's bank account before disbursal and before registering a mandate, collects EMIs by eNACH, and keeps disbursal and repayment flows in line with RBI's digital lending rules.
Illustrative scenario, not a customer case study. It shows how this kind of business could set up its payments; which capabilities Peneu provides for your business is confirmed during onboarding. No measured results are claimed.
The Challenge
Failed EMIs and slow disbursals were holding back growth
As the borrower base grew, two problems grew with it. Mandates registered on wrongly captured bank details failed at the first EMI, and the collections team spent its time chasing them. Disbursals ran through one bank's manual process, so borrowers waited and staff re-keyed payment details.
The Approach
Verify first, then disburse and collect
The NBFC restructures its flow so that bank details are verified once, at application, and everything after uses the verified account.
- The borrower's bank account verified during the application: active, and the name matches
- The loan disbursed to that verified account, the borrower's own, as RBI's digital lending rules require for digital loans
- An eNACH mandate registered on the same account, within the onboarding flow
- EMIs collected by mandate on a fixed cycle, directly into the NBFC's account
What this setup changes
Verified accounts before mandates, and cleaner fund flows
- Wrong bank details are caught at application, not at the first EMI
- Mandate registration happens inside onboarding
- Disbursal and repayment follow the direct routes the rules require
EMI failures caused by incorrect account details are caught early. Failures for other reasons, such as insufficient funds, still need a collections process, and which disbursal and collection services Peneu provides to lenders is confirmed during onboarding.
Decisions to make
What a lender like this has to decide
- When should the account be verified?
- At application, before either disbursal or mandate registration, so both use the same, verified account.
- Which mandate type?
- eNACH for most digital borrowers, physical NACH as a fallback, and UPI or card e-mandates where borrowers prefer them and amounts suit.
- What happens when an EMI bounces?
- The return reason decides: retry after salary day where the rules allow, contact the borrower, or set up a new mandate. Penal charges must follow RBI's instructions and the loan's terms.
- Who handles recovery?
- If a recovery agent is assigned, RBI's digital lending rules require the borrower to be told the agent's details by email or SMS before contact.
Watch out for
Where lending payments go wrong
- Disbursing to an account that isn't the borrower's own; for digital loans, RBI's rules require the borrower's bank account, with narrow exceptions.
- Repayments routed through a service provider's pool account, which the digital lending rules prohibit.
- Mandates registered on details that were never verified.
- Unapplied repayments from borrowers who paid without a reference, which look like defaults downstream.
Go deeper: Payments for NBFCs and lenders · NACH guide · Bank verification
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