An NBFC LSP Agreement is a contractual arrangement between a regulated lender, such as an NBFC, and a Lending Service Provider that performs one or more digital lending functions for the regulated entity, such as customer acquisition, services incidental to underwriting, loan servicing, monitoring or recovery. Under RBI’s Digital Lending Directions, digital lending through an...
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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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