> ## Documentation Index
> Fetch the complete documentation index at: https://banking.nextedge.consulting/llms.txt
> Use this file to discover all available pages before exploring further.

# Illustrative Indian NBFC configuration

> A fictional lending NBFC with explicit limits on deposits, cards and channels.

**Fictional example: Banking Demo Finance India, code DEMONBFC. Lending category, regulatory permissions and real policy owners remain inputs. This example grants no deposit-taking or card-issuing powers.**

## Offering setup

| Area | Example proposed configuration |
| - | - |
| Primary offering | NBFC lending: personal and secured SME variants for review |
| Channels | Assisted Banking Ops, borrower Customer Web and mobile APIs |
| Origination | KYC/income evidence → consented bureau → credit policy → independent sanction |
| Documentation | Adopted KFS, agreement, mandate, security and notice templates |
| Disbursement/repayment | Contracted bank rails with explicit permitted destination, status and reconciliation |
| Servicing | Loan book/schedule, allocation, quote, prepayment, foreclosure and controlled corrections |
| Collections | Authorised agent allocation, conduct, promises, receipts and settlement authority |
| Finance | Loan subledger, approved accounting, impairment/provisioning and regulatory reports |
| Disabled by default | Demand deposit accounts, debit-card issuance, PPI issuance, credit-card issuance, ATM acquiring |
| Conditional extension | Deposit-taking NBFC or specifically permitted card issuer requires a separate offering/policy/certification packet |

## Worked borrower journey

APP-001 requests INR 120,000.00. Verify identity/income/consent, assess with CREDIT-DEMO-v1, obtain sanction and present the exact accepted terms. Disbursement creates LN-001 only when its bank outcome is confirmed.

For a later INR 10,000.00 receipt, the fictional allocation example uses INR 1,000.00 interest and INR 9,000.00 principal, leaving INR 111,000.00 principal. This is arithmetic illustration, not an interest or repayment policy. A bank return must reverse the original allocation and correct dues/history. A promise to pay is not a receipt.

If LN-001 is secured, release the linked security only after approved discharge and closure. If overdue, route to permitted collections with the required agent/customer notice. Exceptions, restructuring, waiver/write-off and settlement require explicit authority.

## Optional variants

Housing finance, microfinance/group lending, vehicle/gold/property-backed lending, supply-chain finance and co-lending may need different customer types, evidence, schedules, security, conduct and reports. They are candidates, not enabled defaults.

Co-lending must declare each lender's ownership, funding, disbursement/repayment allocation, ledger, reconciliation and customer disclosure. A sponsor relationship cannot silently combine customer access across tenants.

## Completion evidence

Demonstrate application → sanction → accepted agreement → confirmed disbursement → allocation → reversal/arrears handling → reconciled statement → closure/collateral release. Obtain real interface/policy owners and current entity-specific regulatory review before bank UAT.


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