LSP (Lending Service Provider)

Lending Service Provider is the formal RBI classification for a digital platform that handles loan origination, KYC, underwriting support, servicing, or collection on behalf of an RBI-registered lender. Introduced by the 2022 Digital Lending Guidelines, the LSP framework requires every LSP to disclose its underlying lender prominently in the app, provide the borrower with a copy of the Key Fact Statement (KFS) before disbursal, and route all funds through the lender's own bank account — not the LSP's. LSP and DSA are often used interchangeably, but LSP is the more current and regulator-recognised term.