Walnut Prime is a bank balance top-up product (Line of Credit) that is being offered to Walnut users, featuring
– Instant money transfer when you need it – anytime, anywhere
– No prepayment fees, late payment fees, no membership fees
– Flexible EMI tenures as per your convenience
Prime is being rolled out in phases to users. Once you indicate you’re interested, and if an offer is available, you will get a notification along with details in a Prime card in the app home screen.
The disbursal amount offered is between Rs.10,000 and Rs.5 lakhs, with the minimum top-up amount being Rs.8,000. The actual amount you’re eligible for will be displayed in the app.
You can use the disbursement amount from Walnut Prime for absolutely anything you want, right from a new phone, a vacation or even an emergency.
Prepayment charges – ZERO
Charges for delayed / late payment – ZERO
Interest on withdrawal amount – as applicable (shown in the app)
NACH Bounce Penalty – Rs.500 + GST (in addition to bounce charges levied by your bank)
How Prime Works
Once you make a withdrawal, you may see a lower available amount. This is based on the amount and tenure selected by you for the first top-up, and the app shows an alert as well. The amount will be restored after payment of the final EMI of the first top-up, or if you choose to make a complete prepayment.
After the KYC process is complete and documents are approved, you will receive a notification that Prime is activated.
You can tap on the Prime card and input the amount to withdraw and the tenure, based on which EMI details will be shown. Select one, and proceed to top-up. Money will be credited to your account via IMPS.
At a time, only 2 top-ups can be active. The next top-up can be done 7 days after the disbursal date of the first withdrawal, subject to availability of balance. The total disbursal amount across active top-ups cannot exceed your pre-approved limit.
The interest rate varies across users. It is calculated on reducing balance method and will accrue on a daily basis for the amount utilised from Walnut Prime. It must be paid on dates as per the schedule set out in the app. The interest rate and EMI applicable to you can be viewed in the app itself, as you begin filling in the required details.
EMI repayments are scheduled as per the disbursal date, and due date will be shown in the app. EMIs are payable as per the tenure selected by you.
The EMI will be auto-debited from the same account into which the amount was disbursed. In case of failure of auto-debit for some reason or if the NACH mandate has not yet been registered by your bank, alternate payment details will be shared with you via SMS or email.
In case of a bounce due to insufficient balance or any other reason, NACH may be presented again and the date will be communicated via SMS. Manual payment should be avoided to ensure there is no unnecessary double payment or another bounce in case of failure to keep balance the second time.
During the KYC visit, we will collect your signature on a NACH mandate on the basis of which EMIs will be auto-debited from your account on the due date. This NACH mandate is in the name of our lending partner, and up to your Prime limit, which is the amount you can withdraw.
Once sent to your bank, it takes 20-40 days to register. In case NACH mandate is rejected by your bank or if there is a delay in registration, we will share a payment link or account details via SMS and email, to which EMI can be paid via IMPS or NEFT. Further attempts will still be made to register the mandate.
Once the mandate is registered, EMIs will be auto-debited from that account each month. In case of a change of bank account for any reason, it is your responsibility to inform us of this change at least 15 days in advance of the next EMI date. You may need to either continue to maintain sufficient balance for the upcoming EMI or make a manual payment at least 7 days before the EMI date, so we can ensure NACH does not get presented that month. Once the EMI reminder is sent via SMS and email, stopping the NACH mandate may not be possible and you will be responsible for payment of bounce charges due to insufficient balance.
NACH is National Automated Clearing House mandate, a payment mechanism set up by NPCI (National Payments Corporation of India), which instructs your bank to make regular automated payments on your behalf. This replaces the older ECS mandate you may be familiar with.
* It is possible that some banks may levy a charge for NACH registration or signature verification. This is entirely at your bank’s discretion and is payable by you. Walnut or our lending partner do not levy any NACH registration charges.
EMIs will be collected every month – the date of your first EMI will depend on the disbursal date and will be shown in the Prime card in the Walnut app. You will receive a reminder via SMS and email, 2-3 days before the EMI due date, confirming if the EMI will be auto-debited or if it has to be paid manually. In case the regular EMI date falls on a bank holiday, the revised date will be intimated via SMS and email.
In case of auto-debit, once the file is sent to your bank, the actual debit is done by them. We do not have any control over the exact date or time when NACH will be presented. It is your responsibility to ensure there is sufficient balance in the account till the EMI is debited. Failure to do so will lead to a bounce and levy of NACH bounce penalty.
EMIs have to be paid on the due date. Though Walnut will not levy any late payment charges, failure to service EMI on time can impact your credit score.
Further, if the NACH mandate for auto-debit is registered, and if there is a bounce due to insufficient balance, a NACH bounce penalty is payable. In such cases, the will levy bounce charges on both parties – the account holder and the NACH holder (our lending partner). Both charges are payable by you. Additionally, our lending partner may also initiate legal proceedings to recover pending dues.