Facts checked on 27 October 2026. Published by MDG Services on 20 October 2026.
A starting credit limit for one regular customer of your pump, with the working shown.
Work out a limit
How it works
- The rule of thumb: monthly purchase × credit days ÷ 30. That is about what the customer fills with you in one credit period.
- A new customer starts at half, and rises after a few months of on-time payment.
- Rounded down to the nearest Rs 1,000, or to the nearest Rs 100 when the figure is under Rs 1,000.
- Your own cap: if you could not carry the result should this customer pay a month late, your figure wins.
For example, with made-up figures:
| Monthly purchase | Credit days | New customer? | Your cap | Limit |
|---|---|---|---|---|
| Rs 3,00,000 | 15 | No | None | Rs 1,50,000 |
| Rs 1,25,000 | 30 | Yes | None | Rs 62,000 |
| Rs 4,50,000 | 15 | No | Rs 1,50,000 | Rs 1,50,000 |
After you set it
- Keep it in rupees, not litres, because the price moves. How to set a credit limit explains the rule in full.
- Decide in advance who may allow a fill past it: see a customer over the limit.
- Look at it again after two or three months: raise it after on-time payment, lower it if payments slip.
- Write it next to the transporter's name in your khata, or on the Customers tab of the udhar khata format.
Questions people ask
01How much credit should I give a customer?
About what they buy from you in one credit period. For Rs 3,00,000 a month on 15 days' credit, that is Rs 1,50,000. Start a new customer at half.
02Udhar ki limit kitni rakhe?
There is no fixed number: it is your own business decision. Start from the rule of thumb, then ask: could I carry this whole amount if this customer paid a month late? Put that figure in the last box.
03Why does it round down?
A round figure is easier for nozzle men to remember and check, and rounding down keeps you on the safe side. A figure under Rs 1,000 rounds down to the nearest Rs 100 instead.
04Does the calculator save what I type?
No. The sum is worked out on your own phone or computer, and nothing you type is stored or sent.
05Where do I keep the limit once I have it?
In your khata or sheet, next to the transporter's name, in rupees. Khata Kavach keeps a rupee limit for each transporter and checks it at the nozzle before fuel goes in.
Related pages
About Khata Kavach (advertisement)
Khata Kavach is a shared credit book for petrol pumps, from MDG Services. The transporter asks before each truck fills, your nozzle man sees the limit before he fills, and both of you see every fill, payment and bill. It never lends or holds money.