Industry · lending
One disbursal, then years of collections
A loan is paid out once and paid back many times. Most of a lender's payment work sits in those repayments: collecting on time, handling the months that fail, and keeping the loan book and the bank in agreement. RBI's rules shape how money may move at every step.
- SanctionKey Fact Statement shared before signing
- Cooling-offAt least one day to exit without penalty
- DisbursalTo the borrower's own bank account
- RepaymentDirect to the lender's account, often by mandate
- ClosureFinal payment; loan closed
EMIs
EMIs 1 to 3 paid, EMI 4 returned by the bank and later recovered, EMIs 5 to 7 paid, EMIs 8 to 12 upcoming.
Disbursal: right person, right account, once
A disbursal that goes to the wrong account is expensive to recover and damages trust at the start of a relationship. Verify the borrower's account before paying: the name on the account should match the borrower, and the account should be active.
For digital loans, RBI's Digital Lending Directions, 2025 require disbursal into the borrower's own bank account, with narrow exceptions (statutory or regulatory mandates, co-lending flows between regulated entities, and specific end-use disbursals paid directly to the end beneficiary), and never to a third party's account, including a lending service provider's.
Verify the account. Name match and active status before the first disbursal. See bank verification.
Pay once. An idempotent payout request, so a retry can't pay twice.
Confirm with the borrower. Amount, date and bank reference, straight after.
Record the reference. The bank's UTR on the loan account, for any later query.
- Bank verification · Payouts
Collecting EMIs
Most EMIs are collected by mandate, set up at the start of the loan. Other methods fill the gaps: overdue instalments, part-payments and borrowers whose mandate failed. Under the Digital Lending Directions, repayments on digital loans go directly into the lender's account, not through any pass-through or pool account of a third party.
| Method | Best for | Notes |
|---|---|---|
| NACH mandate | Regular EMIs from a bank account | Registered once; debits on due dates; returns come back with reasons |
| UPI or card e-mandate | EMIs from borrowers who prefer UPI or cards | Pre-debit notices and limits under RBI's e-mandate framework |
| Payment link | Overdue EMIs and one-off payments | Sent by SMS or message; the borrower pays by any method |
| Virtual account per loan | Bank transfers and part-payments | The account number identifies the loan |
When an EMI doesn't go through
Returned debits are routine at scale. The return reason decides the next step: insufficient funds suggests a retry after salary day or a call; a closed account or cancelled mandate needs a new mandate or another payment method.
Charges for late payment must follow RBI's instructions on penal charges in loan accounts and what the loan's terms disclosed. And if a recovery agent is assigned after a default, the Digital Lending Directions require the borrower to be told the agent's details by email or SMS before the agent makes contact.
| Situation | Next step |
|---|---|
| Insufficient funds | Present again where the rules allow, or contact the borrower |
| Account closed | New mandate or another payment method |
| Mandate cancelled by the borrower | Contact the borrower; set up a new mandate |
| Borrower disputes the debit | Check the mandate and the schedule; resolve through the bank's process |
Lending service providers and fund flows
Many lenders work with lending service providers (LSPs), which the Digital Lending Directions define as the lender's agents. The rules keep money away from them: the lender stays fully responsible for the LSP's acts, and fund flows run directly between borrower and lender.
Disbursal
Borrower's own bank account; never the LSP's.
Repayment
Direct to the lender's account; no LSP pass-through or pool account.
LSP fees
Paid by the lender; not charged to or collected from the borrower by the LSP.
Summarised from RBI's Digital Lending Directions, 2025. A summary, not legal advice.
Keeping the loan book and the bank in step
Every rupee that arrives has to be applied to the right loan, in the right order (charges, interest, principal, as your terms say), on the right date. Part-payments, prepayments, returned debits and refunds of excess payments all make that harder.
Reconcile daily: collections received against amounts due, by loan. Unapplied money, from borrowers who paid without a reference, needs an owner and a deadline, because an EMI that was paid but not applied looks like a default to everyone downstream.
Collections vs dues. Daily, loan by loan.
Unapplied receipts. Traced and applied before they age.
Returns. Reversed on the loan account the day they arrive.
Excess payments. Refunded or adjusted as the borrower asks.
Where Peneu fits
This page doesn't say Peneu is a lender or a lending service provider, or name any lender using Peneu. It describes how loan payments work for regulated lenders. Whether Peneu provides disbursal, collection or verification services to your lending business, and on what basis, is confirmed during onboarding.
Lending payment questions
Where must a digital loan be disbursed?
Under RBI's Digital Lending Directions, 2025, into the borrower's own bank account, apart from narrow exceptions such as statutory or regulatory mandates, co-lending flows between regulated entities, and specific end-use disbursals paid directly to the end beneficiary. Never to a lending service provider's account.
Can a lending service provider collect repayments?
Not into its own account. The Directions require repayments to be made by the borrower directly into the regulated entity's bank account, without any pass-through or pool account of a third party, including the LSP.
What's the usual way to collect EMIs?
A mandate the borrower authorises once: NACH on a bank account, or an e-mandate on a card or UPI. Each EMI is then debited on its due date. Payment links and virtual accounts help with overdue amounts and part-payments.
What happens when an EMI bounces?
The bank returns the debit with a reason. Depending on the reason, the lender may present it again, contact the borrower, or ask for payment another way. Penal charges must follow RBI's instructions on penal charges in loan accounts and the loan's disclosed terms.
What must borrowers be told about recovery agents?
Under the Digital Lending Directions, if a recovery agent is assigned or changed after a default, the borrower must be told the agent's particulars by email or SMS before the agent contacts them.
Is Peneu a lender or a lending service provider?
This page doesn't say so. It describes how loan payments work for regulated lenders. Whether Peneu provides any payment services to lenders, and on what basis, is confirmed during onboarding.
Official sources
- RBI — Reserve Bank of India (Digital Lending) Directions, 2025 (8 May 2025)Disbursal and repayment flows, LSP definition and fees, recovery-agent communication, penal-charges reference, cooling-off.
Last reviewed . Examples, amounts and screens marked illustrative are not Peneu figures.