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LSP Lending Service Provider
  • Adv Govind Bali
  • LSP
  • July 2, 2026

LSP Lending Service Provider in Digital Lending: Agency vs Principal-to-Principal Contracts Under RBI Guidelines

A Lending Service Provider, or LSP, in digital lending is generally treated as an agent of the Regulated Entity when it performs lender functions such as customer acquisition, underwriting support, pricing support, servicing, monitoring or recovery on behalf of a bank or NBFC. Even if the agreement between the Regulated Entity and the LSP describes...

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