Consumer durable & BNPL

Service small tickets without touching each one.

Millions of small tickets, a yield that sits in the merchant's subvention, and a mandate that is the collection. AI agents run every account on its cycle; your policy and a named approver decide what moves.

30 minutes with the product team. No generic demo.

Consumer durable and BNPL books, on a platform built by the team behind Apache Fineract, the world's #1 open-source lending core.

This page covers
  • Consumer durable loans
  • No-cost EMI
  • BNPL pay-in-instalments
  • Mobile and appliance finance
Consumer durable finance and BNPL use different product constructs and share one operating requirement: high-volume accounts cannot afford high-touch servicing. Personal loans are their own book.
Job 1

Every flagged account arrives with the mandate and the merchant behind it.

A bounce on a checkout loan is one fact. Whether it was the first presentation, whether the merchant reversed the sale, and how fast the store's book is rolling are what the AI agent reads before it proposes anything.

Two accounts, the same missed instalment.

What the agent readsA return the merchant reversedA first EMI that bounced
The eventThe merchant reversed the sale on day nine.The first presentation bounced for insufficient funds.
The mandateActive; nothing to present.Active; the re-presentation window is open two more days.
The schemeNo-cost EMI, manufacturer subvention, booked upfront.No-cost EMI, dealer subvention, amortised.
What the agent stagesA cancellation: schedule, subvention entry and statement recomputed, mandate closed. No collection.A nudge in the window with the re-presentation date, then a call if the second one fails. No freeze yet.

A return the merchant reversed

The event
The merchant reversed the sale on day nine.
The mandate
Active; nothing to present.
The scheme
No-cost EMI, manufacturer subvention, booked upfront.
What the agent stages
A cancellation: schedule, subvention entry and statement recomputed, mandate closed. No collection.

A first EMI that bounced

The event
The first presentation bounced for insufficient funds.
The mandate
Active; the re-presentation window is open two more days.
The scheme
No-cost EMI, dealer subvention, amortised.
What the agent stages
A nudge in the window with the re-presentation date, then a call if the second one fails. No freeze yet.
See what the servicing agents do
Job 2

The life of a checkout loan, on the record.

Short, fast and full of rules. Each step is a state the loan record holds and a decision the record can show; the agent prepares the next, and a named approver signs what changes money.

  1. Step 1Booked at checkoutDown payment or advance EMI, scheme and subvention, mandate registered, KFS issued.
  2. Step 2Two schedules, one loanThe customer's schedule at the scheme rate beside the accounting schedule at IRR.
  3. Step 3Presented, bounced, re-presentedAuto-debit on the cycle; a bounce posts its penal charge and opens the re-presentation window.
  4. Step 4Nudged, then frozenContact inside the window, logged. Soft then hard freeze on the rule; a named approver signs anything that changes money.
  5. Step 5Cancelled, closed, or written offA return recomputes the schedule; a closure releases the mandate; a write-off follows the rules, on the record.

Penal charges never capitalised, contact only inside 8am to 7pm, the cooling-off exit at principal plus proportionate APR: run as code at every step.

Job 3

Small-ticket lending has different servicing maths.

Each of these turns a small loan into an expensive servicing event if a person has to touch it.

  • Subvention accountingAmortised or upfront, as fee or interest income, GST by the partner's state; customer view and accounting view side by side.
  • Advance EMI and cyclesDown payment or advance instalments; daily, weekly or monthly billing with custom bill and due dates.
  • Cancellations and reversalsA partial or full return recomputes balance, schedule and statement; the mandate closed or resized.
  • Mandate and appropriationAuto-debit on the cycle; receipts appropriated in the product's order; bounce charges by product.
  • DPD, freeze, classificationDPD counted daily; soft and hard freeze on the delinquency rule; classification following the days.
  • Merchants and schemesMerchant and scheme configuration with partner-level and parent-level limits.
That is the whole mechanism. The rest of this page is the book.The agent proposes. Your policy decides. A named person signs what moves money. The record proves it. Bring one consumer durable product to a Drift Audit and we walk it on your accounts, not on a demo deck.
Bring us your checkout book

30 minutes with the product team. No generic demo.

Can Lokta run this book?

Everything you expect from a consumer-durable LMS, before any of the above.

The differentiated part sits on a plain one. Six things Lokta's loan management system does on every checkout account, stated so you can tick them off.

  • Schedules and repaymentEMI, prepayment, part-payment, foreclosure, moratorium and restructure, re-amortised paise-exact.
  • Payments and mandatesNACH, UPI and gateway receipts appropriated in the product's waterfall; bounces and re-presentation.
  • ChargesFees and penal charges under the 2024 directions, in their own heads, waivable only under maker-checker.
  • ClassificationDPD, SMA and IRAC stages, provisioning and Ind-AS, derived from the record every day.
  • Statements and documentsStatements and bills on the cycle; NOCs, KFS and APR disclosure and servicing documents on demand.
  • Bureau and accountingBureau connector, double-entry posting to mapped GL heads, the audit trail behind every change.
See the loan management system

Five things decide whether a checkout book keeps its margin.

The numbers are the industry's own. What follows each one is the part Lokta runs.

  1. 01

    The count grows faster than the value

    11.5% growth in consumer-durable loan count in FY25, against 3.3% in value

    More loans, smaller tickets, the same work on each: cost to serve rises with the count while yield per loan falls.

    So Lokta runs the low-touch cure on every account, so people work the exceptions.

    CRIF High Mark, How India Lends FY25
  2. 02

    No-cost EMI is a subvention

    0% is not a rate; RBI barred banks from zero-percent consumer-durable schemes in 2013

    The interest is real; the manufacturer or dealer pays it, and the book has to account for it by scheme and by partner.

    So Lokta books the subvention amortised or upfront, as fee or interest, per scheme.

    RBI, Sept 2013
  3. 03

    The bounce charge is a penal charge

    1 Apr 2024 since when a missed-instalment penalty is a penal charge, not interest, never capitalised

    On a small ticket the mandate is the collection, and the bounce is the first signal you get.

    So Lokta posts the bounce charge as a separate line the day it bounces.

    RBI, Penal Charges in Loan Accounts, Aug 2023
  4. 04

    The exit is in the KFS

    Oct 2024 since when every retail loan carries a KFS with its all-in APR

    A digital loan also carries a cooling-off exit at principal plus proportionate APR; on a checkout loan that is a rules engine, not a memo.

    So Lokta computes the exit amount from the schedule and records the election.

    RBI, KFS directions, Apr 2024; Digital Lending Directions, May 2025
  5. 05

    A million tickets, one calling window

    8am to 7pm the hours a recovery agent may call, with no intimidation of any kind

    You answer for your agents, and on a book this size the window is enforced by the system that queues the calls or not at all.

    So Lokta schedules every contact inside the window and logs each attempt.

    RBI, recovery-agent directions, Aug 2022

One platform, configured for consumer durable and BNPL.

The same loan management system, servicing agents and lending ontology run every book; on this one the policy and the workflow are shaped for millions of small tickets. How control works, where it runs, and how it differs from a record-keeping LMS are on the Solutions page, said once.

What lenders ask first.

What does Lokta do on a consumer-durable or BNPL book after disbursal?

It runs the volume: every account serviced on its cycle, the subvention booked, the mandate presented and re-presented. Agents stage the nudge, call or freeze inside your rules; a named approver signs anything that changes money. Checkout decisioning and merchant onboarding stay with you.

How is no-cost EMI accounted for?

As a subvention. The interest is real; the manufacturer or dealer pays it. Lokta books it amortised or upfront, as fee or interest income, with GST on the fee by the partner's state, and shows you the customer's zero-rate schedule beside the accounting one.

What happens when the customer returns the goods?

A partial or full cancellation recomputes the balance, the schedule, the subvention entry and the statement, and closes or resizes the mandate to match. The event and its reason sit on the account, so you never mistake a return for a default.

What rules bind collections on small tickets?

Bounce charges are penal charges, never capitalised, disclosed in the KFS. Recovery agents call only between 8am and 7pm, and you answer for them. A digital borrower may exit in the cooling-off period at principal plus proportionate APR. Lokta runs all three as rules.

Do we have to replace our LOS, our underwriting or our LMS?

Not your LOS and not your credit decisions: Lokta runs the book after approval and takes the sanctioned terms as given. Not your LMS either, unless you want to. The servicing agents run on the core you already have, connecting to it for borrower and loan context and staging work into it; a book can move onto Lokta's own loan management system when you are ready, one book at a time.

What happens after we show you our book?

Thirty minutes with the product team on your merchant and scheme mix: how subvention is booked today, which billing cycles you run, and where the first-instalment bounces land. You hear back within a business day, with a specific next step or with the reasons we would wait. Nobody walks you through a slide deck.

Bring us one difficult workflow.

Your merchants and schemes, how the subvention is booked today, and where the first instalments cost you the most. You get a straight read on fit and direct access to the founding team.

Talk to us

30 minutes with the product team. No generic demo.

See every loan book