Managing Udhaar: How to Give Credit and Still Get Paid
The rules that Indian kirana owners follow to give credit without hurting cash flow or relationships.
June 2026 · By Rajni Sharma
Udhaar is both a service and a risk
Giving credit to regular customers builds loyalty — they'll come back and recommend you. But untracked udhaar is the single biggest reason small kirana stores run into cash-flow problems.
Set a credit limit per customer
Decide the maximum udhaar any single customer can have at a time — typically ₹500 to ₹2,000 for a neighbourhood kirana. When someone crosses the limit, politely decline new credit until some is paid.
Track every entry in a customer's name
Paper khata entries get disputed. A digital record with date, amount and item description is much harder to dispute. Both parties can see the history clearly.
The right reminder script
Avoid shaming — it destroys the relationship. Try: 'Namaste [Name], aapka is mahine ka hisaab ₹[amount] ho gaya hai. Kab tak clear ho sakta hai?' — polite, factual, non-confrontational. Give them a date to respond by.
Monthly settlement habit
Train customers to settle at the start of each month (when salaries arrive). Send a monthly WhatsApp statement — it normalises the settlement cycle and reduces the balance drift that turns ₹500 into ₹5,000.
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