# Loan repayment with Direct Debit
With our Direct Debit APIs, simplify your lending, by automationg loan repayments, ensuring timely repayments, and reducing the need for any manual intervention.
## What is Direct Debit?
Simply put, Direct Debit is an automated payment method which allows lenders to collect repayments directly from a borrower's bank account on agreed dates. Once set up, payments are automatically deducted without any further action required from the borrower, providing a hassle-free repayment experience.
## How this works
* Your customer provides the bank account they would like the direct debit mandate to be attached to.
* As the lender, you proceed to create an e-mandate using the customer’s account details
* Once the direct debit mandate is created, your customer has to activate the mandate by sending N50 to the registered NIBSS account number. This is your customer’s way of granting permission to debit their account.
* NIBSS makes a N100 debit attempt on the borrower’s account. This is to ensure that the account can be debited when it’s time for loan repayments.
And with that, the mandate is activated!
Feel free to configure constant SMS or email reminders before a debit is done to the customer’s account.
By leveraging Direct Debit for loan repayments, you can streamline processes, ensure timely payments, and provide a better experience for your customers and reduce the rate of Non Performing Loans (NPL).
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