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Credit policy for a petrol pump: a one-page template to copy

Short answer

A credit policy is one page that says, before the first fill, who gets udhar, how much, for how long, who may say yes at the nozzle, and what happens when payment is late. Copy the template below, fill each [blank] with your own figure and show it to every transporter. It is a sample to adapt, not a legal document.

MDG Services makes Khata Kavach, so this page comes from the maker of one of the apps it may mention. It is general information, not legal, tax or financial advice. Facts about other apps are taken from their own websites and app listings on the date shown and can change, so check them there before you decide.

Facts checked on 27 October 2026. Published by MDG Services on 28 October 2026.

The template

Copy this, fill every [blank], and give a copy to your nozzle men and each transporter. For a binding agreement, ask an advocate.

  1. Who gets credit. Regular transporters known for [months] months who paid on time. Each names one person responsible, a phone that gets answered, and which trucks may fill on credit (truck numbers). See who to give credit to.
  2. Limit. A new transporter starts at Rs [amount], and may go to Rs [amount] after [months] months of paying on time. The owner alone changes a limit. See how to set a limit.
  3. Credit period. Pay within [days] days of the bill, or settle [monthly / every 15 days / when the limit is full].
  4. Who says yes at the nozzle. The nozzle man fills while the limit has room. A manager may allow a fill past it up to Rs [amount] and tells the owner the same day. Beyond that the owner decides. See when a customer is over the limit.
  5. What every fill records. Date and time, truck number, litres, rupees, who filled, slip number or photo.
  6. Bills. A numbered bill goes out [every N days / on day N of the month]. See kachcha and pakka bills.
  7. Late payment. Reminder [days] days after the due day, a second on day [days]. Still unpaid on day [days]: credit stops, cash only, until the balance is cleared. See when to stop credit.
  8. Interest. [None / rate] on overdue amounts. Agree it with the customer in writing before the sale; where nothing is agreed, a court decides Interest Act 1978, s.3.
  9. Disputes. Raise a doubt within [days] days of the bill. We check the slip, the photo and who filled. A wrong line is fixed by a new line with the reason, never by rubbing out the old one.

Ask each transporter to sign a copy or reply "Agreed" on WhatsApp.

Where Khata Kavach fits

The owner sets each transporter's limit and records when you collect. The transporter reads the terms and agrees on his phone before sending a request. By default, a manager's PIN lets a fill go past the limit, and the owner sees it on the Today screen; the owner can set a transporter to cash only instead. For a transporter you choose, the owner can let a manager's PIN allow a fill with no request. To ask a transporter near or past the limit for payment, one tap opens your own WhatsApp with the message ready. Khata Kavach sends nothing itself.

Khata Kavach keeps the record. You set every rule, and it never lends or holds money.

General information, not legal advice. For your own case, speak to an advocate or a chartered accountant.

Questions people ask

01What are the rules for giving udhar to a customer?

They are your own. Write them on one page, agree them with the customer before the first fill, and apply them the same way to everyone.

02Can I charge interest on late payment?

It stands on firmer ground when the customer agreed in writing before the sale. Where nothing was agreed, a court decides Interest Act 1978, s.3. Khata Kavach does not charge or add interest.

03Which credit period can I record in Khata Kavach?

For each transporter you record when you collect: monthly, every 15 days, or when the limit is full. He sees it in the terms and agrees on his phone. It is a recorded term: Khata Kavach does not send reminders or stop credit on its own.

Related pages

Who to give credit to: six checks before you say yes to a customerUdhar kisko dena chahiye? Six checks before a petrol pump gives credit to a new transporter, and what to write down when you agree.
How to set a credit limit for a regular customer: a rule of thumb with examplesHow much credit to give a regular customer at a petrol pump: a rule of thumb from monthly purchase and credit days, with worked examples.
Customer over the credit limit at the nozzle: what the nozzle man should doA rule sheet for when a transporter is over the credit limit at the nozzle: who may allow one fill, what to write down, and when to fill for cash.
Seven habits that make credit easier to see and controlPump me udhar se kaise bache? You cannot always stop credit, but you can ease the worry. Seven habits for a petrol pump that gives diesel on udhar to regular customers.

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.

Set up my pump in the appCall 1800‑891‑3496

About this page. This page is general information published by MDG Services, a brand of VRUOOM PRIVATE LIMITED (CIN U29194HR2021PTC098450), the company that makes Khata Kavach. It is free to read and needs no sign-up.

We make one of the apps. Where a page compares Khata Kavach with another app or another way of keeping credit, remember that we make Khata Kavach. We compare like with like, use only facts the other company publishes, and say plainly where another app does more.

Other companies' names. Khatabook, OkCredit, Vyapar, myBillBook and every other product or company named here belong to their owners. We name them only to say which product a fact is about. We have no connection with them, and they have not seen or approved these pages.

Facts about other apps. Facts about other apps come from their own websites, help pages and app store listings, on the date shown as "facts checked on". Apps change their features and prices often. Check the app's own website before you decide, and tell us if anything here is out of date: we will correct it.

Not legal, tax or financial advice. Pages about getting paid, notices, interest, courts or tax explain the general position in India on the date shown. Laws and rules change, and every case is different. For your own case, speak to an advocate or a chartered accountant.

Examples are made up. The pumps, transporters, vehicles and amounts in examples are made up, and so is the data on the app screens shown. No example describes a real customer or a real result.

What Khata Kavach is. Khata Kavach records credit fills, bills and payments between a petrol pump and its customers. It never lends money and never holds anyone's money: it is not a bank, a lender or a payment service. A Khata Kavach bill is not a GST tax invoice.

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Advertisement. The box headed "About Khata Kavach" is an advertisement for Khata Kavach, a service from MDG Services. Everything else on this page is free information.

Hindi pages. Hindi pages are written for easy reading and say the same as their English pages. Where a page mentions a law, the official text of that law is the one to follow.

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