Everything you need to know about auto-debit for your loan EMIs — setting up a NACH mandate, e-NACH, supported banks, and how to change or cancel it.
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NACH (National Automated Clearing House) mandate is your authorization for the lender to automatically debit EMI amounts from your bank account on scheduled dates.
NACH is operated by the National Payments Corporation of India (NPCI) and regulated by the RBI. The digital version is called e-NACH or e-mandate, and it allows quick paperless setup directly through your bank.
You can set up auto-debit (NACH mandate) directly in the True Balance app while completing your loan application or anytime afterward from your loan dashboard.
The setup is fully digital and typically involves choosing your bank, verifying your account, and authorizing the mandate online. The app guides you through each step.
Penny-drop is a verification where a tiny test amount is sent to your bank account to confirm that the account number and IFSC are valid and that the account holder name matches.
It's a common step in NACH setup and online bank verification flows. The test amount is minimal and is either refunded automatically or absorbed by the lender. It happens automatically during account linking — you don't need to do anything special.
True Balance supports auto-debit (NACH) for major Indian banks. The full list of supported banks is shown inside the app on the NACH setup screen.
If your bank isn't listed, you can still repay manually through other supported methods like UPI or net banking.
Auto-debit is processed by your bank as part of the NACH clearing cycle on the due date. The exact timing depends on the bank's clearing schedule.
To ensure successful debit, keep sufficient balance in your registered account from the day before the due date.
If the auto-debit fails due to insufficient balance, the lender will typically mark the EMI as missed and apply any applicable late fees. You'll then need to pay manually.
To avoid this, ensure sufficient balance in your registered account at least a day before the due date. If a failure happens, pay through any supported manual method as soon as possible to limit late charges and credit score impact.
You can cancel a NACH mandate through your bank's net banking, mobile app, or by raising a cancellation request with the lender.
Things to know:
- Submit the cancellation request a few working days before the next debit to ensure it takes effect in time.
- The cancellation also needs to be reflected with the lender (merchant). Cancelling only at the bank may not stop the debit if the lender is unaware.
- After successful cancellation, you'll typically receive a confirmation from your bank or NPCI.
- Cancelling the mandate does not cancel your loan obligation. You must continue paying EMIs through other methods.
If you change your primary bank account, you can update your NACH mandate by cancelling the existing mandate and registering a new one with the updated account details.
The True Balance app supports this through the loan dashboard. Contact customer support if you need help with the process.
e-NACH (electronic NACH) is the fully digital version of NACH, set up online with OTP or net banking. Paper NACH requires a physical signed mandate form sent to NPCI.
For most digital lending apps, including True Balance, e-NACH is the standard setup. It takes minutes and doesn't require any physical paperwork.
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