How to use Remita for your loan repayments on Lendsqr

As a digital money lender, you want to make getting paid a breeze for you and your customers. Direct debit is one of the best ways to get repaid; we’ve previously discussed why direct debit is better than using cards. 

In Nigeria, Remita is one of the leading direct debit providers. It’s also the first payment service provider (PSP) licensed by the Central Bank of Nigeria (CBN). With Remita’s direct debit, your borrowers can easily set up a direct debit mandate to repay their loans. Similarly, you need not worry about receiving payments, as your collection is automated.

Remita also has a cool repayment feature called the inflight-debit which allows you to collect the amount owed directly from source; providing a great assurance of repayment. All of these and much more are why, as a lender integrated into Lendsqr’s loan management software, you can conveniently use Remita for your loan repayment collection.

Requirements and procedure to integrate Remita as a payment method

1. Sign up and create your Remita profile.

2. Meet the requirements of the country in which you operate.

3. Have an up-to-date lending license.

4. Log in to your Lendsqr admin console. 

5. Navigate to the “Product Management” tab.

6. Click on the “Loan Products” sub-tab

7. Select the loan product to which you want to add direct debit, then click edit.

8. Scroll down to the “Collection method” section and select direct debit.

9. Scroll down and click on save.

Considerations when integrating Remita as a payment method

1. Remita payment integration is only available for Lenders on the Lendsqr starter plan subscription tier.

2. Prepare for potential chargebacks.

3. Ensure that your card is not being used for fraudulent activities.

4. Take note of the fees imposed by Remita.

5. Take note of the fees imposed by Lendsqr.

6. Maintain a consistently up-to-date license.

Banks and MFIs with restricted Remita access

It’s important to note that only Nigerian banks supported by Remita can currently be utilised for this payment method. Below is a comprehensive list of the Nigerian banks currently supported by Remita:

• Access Bank Plc
• Citibank Nigeria Limited
• Ecobank Nigeria Plc
• Fidelity Bank Plc
• First City Monument Bank Plc
• Globus Bank Limited
• Guaranty Trust Bank Plc
• Heritage Banking Company Ltd.
• Keystone Bank Limited
• Parallex Bank Ltd
• Polaris Bank Plc
• Premium Trust Bank
• Providus Bank
• Sterling Bank Plc
• SunTrust Bank Nigeria Limited
• Titan Trust Bank Ltd
• Union Bank of Nigeria Plc
• United Bank For Africa Plc
• Unity Bank Plc
• Wema Bank Plc
• Zenith Bank Plc

When setting up direct debit or initiating payments using Remita, your customers can only choose from the above-listed banks for seamless transactions within the Lendsqr platform. 

Note: customers would only be able to add their bank accounts for direct debit if their bank is available for Remita direct debit. First Bank, Stanbic IBTC, and Standard Chartered Bank are currently unavailable for Remita direct debit.

Effortless loan repayment for your borrowers 

Don’t you want the peace of mind that comes with knowing that your borrowers’ repayment is secured? Remita assures that. While certain considerations like limited bank availability and associated fees exist, the benefits of Remita direct debit outweigh the drawbacks. Start handling payment collection like a pro with direct debit today. Send us a message at growth@lendsqr.com, and let’s get you started.