Let’s face it most EMI failures aren’t about unwillingness to pay.
The truth is far more operational.
Today’s customers whether salaried, self-employed, or microloan borrowers don’t rely on a single account anymore. Many split their funds across multiple bank accounts:
- One for salary credits
- Another for daily expenses
- A third for savings or investment tracking
Some even rotate funds to take advantage of cashback offers or maintain minimum balance requirements.
So what happens when a lender triggers an EMI debit from just one account?
One of two things:
- There’s not enough balance in that particular account
- The debit fails even though the total money exists elsewhere
And just like that, an otherwise good customer turns into a failed transaction.
Now your collections team gets involved.
Calls, emails, reminders.
Even escalation workflows.
All this because the system only tried one account… and stopped there.
Rethinking EMI Collections in a Multi-Account World
Traditional recurring payment systems like those using eNACH mandates are designed to pull funds from a single linked bank account.
But in the real world, that’s no longer enough.
Lenders are now asking:
What if we could collect from more than one account automatically?
What if the system didn’t wait for failure… but avoided it altogether?
A Smarter Way to Collect: Split Mandates
Modern fintech infrastructure is finally catching up to this reality.
Split Mandates represent a new approach to recurring payments, one that reflects how people actually bank today.
Here’s how it works:
- The borrower links multiple bank accounts to a single eNACH mandate
- On the EMI due date, the system initiates a parallel debit across all linked accounts
- The required amount is pulled collectively, even if it needs to be split between sources
No retries.
No manual tracking.
No reminder calls.
Just one clean transaction completed on time.
Why It Matters for Lenders
When EMI collections become smoother, the benefits go beyond fewer failures:
✅ Higher eNACH mandate success rates
✅ Less time spent by collection teams on follow-ups
✅ Improved cash flow predictability
✅ Better borrower experience (and fewer escalations)
And the logic doesn’t stop with borrowers.
Designed for Lending & Co-Lending Models
Lenders working with co-lending partners face another complexity:
Fund settlement between entities.
Split Mandates can be configured to go even further allowing collected EMIs to be automatically split between lending and co-lending partners, based on pre-set percentages.
That means:
- No more end-of-day reconciliation
- No spreadsheets
- No manual fund transfers
Just intelligent, real-time settlement.
Where Paycorp Comes In
At Paycorp, we’ve built a recurring payment solution that reflects the real world.
Our Split Mandate system, powered by fully compliant eNACH and UPI Autopay infrastructure, is designed to give lenders:
🔹 Secure and compliant mandate setup
🔹 Scalable performance across NBFCs, MFIs, banks, and fintechs
🔹 Smarter logic for multi-account and co-lending collections
Whether you’re collecting EMIs, fees, or recurring dues. we help ensure the money moves with fewer hiccups and more control.
Ready to Rethink Collections?
If you’re still relying on single-account mandates and manual recovery workflows, it’s time to upgrade.
With Paycorp, you don’t just collect payments.
You stay ahead of them.
👉 Book a demo at www.paycorp.io
📩 Or reach out directly at info@paycorp.io
