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Udhar agreement format: a one-page customer credit form to copy

Short answer

Before credit starts, agree it on one page that you and the customer both sign: the customer's details, which trucks may fill on credit, the limit in rupees, the credit days, how bills are shared, what happens past the limit or when payment is late, and any interest, written in. Copy the form below, fill the [blanks] and give the customer a copy. It is a sample, 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 26 October 2026.

For a petrol pump that gives fuel on credit to regular business customers. This is the page the customer signs; your credit policy is the one you keep.

The form

Customer credit form

  1. Parties. Pump: [name, address, phone]. Customer: [name, address], GSTIN or PAN [if any].
  2. Responsible person. [Name], phone [number], who answers for the account.
  3. Trucks that may fill on credit. [Truck numbers]. Changes are sent in writing by the responsible person.
  4. Credit limit. The customer may owe at most Rs [amount] at any one time.
  5. Credit days. Each bill is paid within [days] days of the bill date.
  6. Bills. We send a numbered bill every [period] on WhatsApp. The customer tells us within [7] days if a line looks wrong.
  7. Past the limit. Fuel goes in past the limit only with the owner's or a named manager's OK, or for cash.
  8. Late payment. If a bill is [days] days past due, new credit pauses until the dues are paid. Cash fills continue.
  9. Interest. [None / rate] on overdue amounts, from [day].
  10. Corrections. A wrong line is corrected by a new line with the reason, never rubbed out.

Customer: [name] · sign · date. Pump: [name] · sign · date.

Why each line is there

  1. Names the two sides, so there is no doubt who owes.
  2. Gives you one person to call.
  3. Says which trucks may fill on credit, so the nozzle man knows whom to serve.
  4. One figure that the nozzle man and the customer can both check.
  5. Says when a bill is late.
  6. Tells the customer how bills come, and gives a short window to object.
  7. Says before the day who may say yes at the nozzle.
  8. Makes the stop a rule, not an insult.
  9. Interest stands on firmest ground when it is written here and agreed.
  10. Keeps the history honest on both sides.

Before you use it

  • Take the limit and days from your credit limit and policy, and agree them with the customer first.
  • Sign two copies, one each.
  • Whether this form makes a binding contract is for an advocate to say.

Where Khata Kavach fits

In Khata Kavach you set each transporter's limit in rupees and record when you collect. The transporter reads the terms and agrees on his phone before sending a request. If you want a signature on paper, keep the signed form too.

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

Questions people ask

01Udhari agreement kaise banaye?

Write one page with the customer's details, which trucks may fill, the limit, the credit days, what happens when payment is late, and both signatures. Copy the form above. For a binding contract, have an advocate check it.

02Does this form need stamp paper?

We give no rule on stamp paper. Whether it is needed is for an advocate to say, for your state and your form.

03Should old customers sign it too?

Yes, every credit customer, when you set the limit. Ask for a fresh signature when you change the limit or the credit days.

04Can I add interest on late payment?

It stands on firmer ground when the customer agreed to it in writing before the sale. Where nothing is agreed, a court decides Interest Act 1978, s.3. See interest on udhar.

Related pages

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.
Interest on late payment: can you charge it on udhar?Can a petrol pump charge interest on late udhar? Firmest ground: the transporter agreed in writing before the first credit fill. What to write, and if nothing was agreed.
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.
Udhar khata format: a free Excel sheet and a printable pageDownload a free udhar khata format: an Excel sheet that works out each transporter's balance and credit left, and a printable A4 page. English and Hindi.

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.

Report an error or send a legal notice. If you see a mistake, or need to send us a notice, write to hello@mdgservices.in. We read every message, check it, and correct or remove the page.

Limits on our responsibility. We take reasonable care to keep these pages accurate. To the extent the law allows, MDG Services and VRUOOM PRIVATE LIMITED are not responsible for loss caused by relying on this page alone. This does not limit anything the law does not allow us to limit, including responsibility for fraud or for an error we knew about and did not correct. Your legal rights are not affected.

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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