SMS for banks, NBFCs and lenders

Bulk SMS for banks, NBFCs and digital lenders

Send disbursal confirmations, EMI due notices, NACH bounce alerts and closure updates from a registered header, worded the way RBI's fair practices code expects.

Start free trial Talk to sales

NBFCs and housing finance companiesMicrofinance institutionsDigital lending apps and their partner lendersCo-operative and small finance banksGold loan and two-wheeler finance companies

SMS from an NBFC header with an EMI due reminder and a same-day bounce notice with a payment link, sent to the borrower only

How do NBFCs and lenders use SMS?

Lenders in India use SMS to confirm sanction and disbursal, remind borrowers of EMI dates, report NACH or cheque bounces, acknowledge payments and confirm loan closure. Banks register OTPs and debit alerts as transactional; NBFCs usually register servicing messages as service implicit. Every dues SMS must be polite, addressed only to the borrower and free of threats.

Updated 15 Nov 2026

Key facts: SMS for banks, NBFCs and lenders

Channel: Bulk SMS
Best for: Sanction and disbursal confirmation; Pre-EMI due reminder; NACH or cheque bounce alert
SMS categories: Service implicit, Transactional
Who it suits: NBFCs and housing finance companies, Microfinance institutions, Digital lending apps and their partner lenders, Co-operative and small finance banks, Gold loan and two-wheeler finance companies
Rules: TRAI DLT: registered entity, header and content template for every SMS; promotional SMS only 10 am to 9 pm and not to DND numbers
Pricing model: Prepaid credits quoted by volume, GST extra. How pricing works
Integration: REST API and webhooks (message.delivered, message.failed, message.clicked) into your own software. SMS API

Where lending communication goes wrong

Bounces discovered too lateA NACH mandate fails on the 5th and the borrower hears about it only when a collection call comes on the 12th, by which time bounce charges and penal interest have piled up.

Dues messages that breach conduct rulesField teams and agencies sometimes send their own texts with harsh language or to a borrower's relatives, which exposes the lender to complaints under RBI's recovery guidelines.

Borrowers who cannot tell real SMS from fraudFake loan-app messages are common. If your servicing SMS come from shifting numbers with no brand header, borrowers ignore genuine dues alerts too.

Which SMS does a lender send across the loan life cycle?

Service implicit

Sanction and disbursal confirmationConfirms the sanctioned amount, the disbursed amount, the account it was credited to and the first EMI date, so the borrower has a record from day one.→ Fewer 'where is my money' calls

Service implicit

Pre-EMI due reminderGoes out 3 days before the debit date asking the borrower to keep the EMI amount in the linked bank account.→ Fewer mandate failures

Service implicit

NACH or cheque bounce alertTells the borrower within hours that the EMI presentation failed, the amount now due and a {#var#} payment link, before charges grow.→ Faster cure of first-time bounces

Service implicit

Payment receiptAcknowledges every EMI, part-prepayment or foreclosure payment with the receipt number and outstanding principal.→ Clear proof of payment

Service implicit

Loan closure and NOCConfirms the loan is closed and when the NOC or original documents will be released, as RBI now expects within a fixed period.→ Fewer branch visits for NOCs

Transactional

Debit alerts and OTPs from banksBanks send account debit and credit alerts and transaction OTPs on the transactional category, which only banks may use.→ Alerts delivered 24x7

DLT templates lenders can register

Copy, edit and use these as a starting point.

EMI due reminderService implicit

Dear {#var#}, EMI of Rs {#var#} for loan a/c {#var#} is due on {#var#}. Please keep sufficient balance in your bank account. -{#var#} Finance

Bounce intimationService implicit

Dear {#var#}, your EMI of Rs {#var#} for loan a/c {#var#} could not be collected on {#var#}. Pay here: {#var#} or call {#var#}. -{#var#} Finance

Loan closureService implicit

Dear {#var#}, your loan a/c {#var#} is fully repaid and closed on {#var#}. Your NOC will be issued by {#var#}. Thank you for banking with us. -{#var#} Finance

How does SMS work for banks, NBFCs and lenders?

Your LMS marks the eventDisbursal, due date, NACH return file or receipt posting creates an event in your loan management system.
The API call carries the template IDYour system calls the MsgClub API with the borrower's own number, the DLT template ID and the variables.
The SMS goes out on the service routeDelivered 24x7 and to DND numbers, because it concerns the borrower's existing loan.
Delivery is logged against the loanA delivery report per message posts back by webhook, giving you an audit trail of every notice sent.

Connect your softwareYour loan management system or core banking software calls the MsgClub API when a due date, NACH return or receipt is posted, and stores each delivery report against the loan account by webhook. SMS API · API and webhooks · Pricing

ComplianceSend dues messages only to the borrower's registered number, never to references, relatives or employers, and keep the wording factual with no threats or shaming. Name the lender in every SMS, use only whitelisted payment links and give a grievance contact in your communication.

Which other channels suit banks, NBFCs and lenders?

Use them together from one account, with shared contacts, reports and webhooks.

WhatsApp for banks, NBFCs and lendersHow do NBFCs use WhatsApp for EMI reminders?See WhatsApp

RCS for banks, NBFCs and lendersHow do NBFCs and lenders use RCS messaging?See RCS

IVR for banks, NBFCs and lendersHow do NBFCs and lenders use IVR?See IVR

Voice broadcast for banks, NBFCs and lendersHow do NBFCs use voice broadcast for EMI reminders?See Voice broadcast

Missed call for banks, NBFCs and lendersHow do banks and NBFCs use missed call numbers?See Missed call

AI calling for banks, NBFCs and lendersTwo-way AI agents that talk to callers in Hindi, English and other Indian languages, unlike a recorded message.See AI Voice

Compare every channel for banks, NBFCs and lenders

Questions about bulk SMS for banks, NBFCs and lenders

Can an NBFC register EMI reminders as transactional SMS?

Usually not. Under TRAI's DLT rules the transactional category is meant for banks' OTPs and account alerts. NBFCs, housing finance companies and lending apps register EMI reminders, bounce notices and receipts as service implicit, which still reaches DND numbers and is delivered at any hour.

What should an RBI-compliant dues SMS say?

It should state the amount, the loan account, the due date and how to pay, in polite, factual language. Avoid threats, legal bluffs, words like defaulter, and any hint that you will contact family or employers. Mention the lender's name so the borrower knows the message is genuine.

Can we SMS a borrower's guarantor or reference about the overdue amount?

Do not message references, family or colleagues about a borrower's dues. RBI's recovery guidelines treat disclosure to third parties as harassment. A guarantor who has signed for the loan is a party to it, so take legal advice before contacting them and keep that message factual.

What time can a lender send collection SMS?

Service implicit SMS are not restricted by TRAI's promotional window, but RBI limits recovery calls to 8 am to 7 pm and lenders sensibly keep reminders within similar hours. A bounce intimation can go the same afternoon; avoid late-night dues messages, which read as pressure.

Should lenders use SMS or WhatsApp for EMI reminders?

Use both where you can. SMS reaches every borrower, including feature-phone users in microfinance and rural two-wheeler loans, and needs no opt-in for servicing. WhatsApp suits borrowers who opted in and want a payment link or statement PDF. Many lenders send SMS first and WhatsApp as the richer follow-up.

Can payment links in loan SMS be blocked?

Yes, if the link domain is not whitelisted on your DLT entity. Under current TRAI rules, operators block SMS carrying URLs, APK links or callback numbers that are not registered. Whitelist your payment gateway or short-link domain and use it consistently in your bounce and due templates.