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NBFC and Fintech
A full-stack

digital lending solution

for NBFCs and Fintechs
Create escrow accounts and operate through APIs for loan disbursements, repayments and co-lending, in compliance with RBI’s

digital lending guidelines

  • Secure

  • Scalable

  • Compliant

Your Payments Partner
India's 1st Fintech platform to enable disbursal of loans and insurance claim settlements
Processed annually
Bank accounts served
Our tailored solution enables NBFCs and their partner LSPs to scale their

digital lending business

Term Loans for individuals & businesses
Term Loans for individuals & businesses
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Buy Now Pay Later
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Supply Chain Finance
Supply Chain Finance
Credit Line Infrastructure
Credit Line Infrastructure

Managed Escrow Solution for NBFCs and LSPs



  • Get fully managed escrow set-up with multiple banking partners

  • Get access to detailed and customized MIS report

  • Enable LSPs to manage complete disbursement repayment cycle on Cashfree Payment's Dashboard or use our APIs

  • Get access to loans, disbursed statements and balance for each LSP on your escrow

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  • Manage multiple NBFC relationships through our solution

  • Ensure visibility and ability to manage the loan cycle for your customer base

  • Get access to dashboard and APIs for disbursement and repayment on NBFC escrow

  • Get access to detailed and customized MIS report for loans originated and repaid for your customers

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instant loan disbursals

directly from your current or escrow accounts with Cashfree Payments’ APIs
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Disburse loans from multiple accounts

Connect multiple existing current or escrow accounts and switch between them for payout.
Enable co-lending use cases with NBFC escrow
Create flexible virtual accounts and use APIs on your NBFC escrow account to enable co-lending use case.
Reduce dependency on a single bank
Switch between connected bank accounts. Avoid any unforeseen exigencies of bank downtimes with multi-bank support.
Get support at lightning speed
Get dedicated support to set up multiple party escrows or trustee escrows for disbursal.
Banking Partners:
Yes Bank
Indusind Bank
Axis Bank
Hdfc Bank

Powerful merchant dashboard

Disburse loans

and make other payments directly from your connected business account
  • Add borrowers and make up to 10,000 payouts in seconds from NBFC escrow

  • Track transfer status and reasons for failure in real time

  • Generate custom reports for deeper analysis

Northern Arc
Streamline loan disbursals with direct Payouts integration
Cashfree Payments helped Northern Arc provide instant consumer &

business loan disbursals

and effective

loan solutions

to all, by simply integrating direct Payouts in their Loan Origination System, eSthenos. With this, Northern Arc could:
Verify borrower bank accounts
Verify borrower bank accounts before disbursing consumer & business loans.
Save man hours
Save man hours by disbursing thousands of consumer & business loans automatically.
Automatically reconcile
Automatically reconcile failed transfers and reversals.
Effortlessly collect payments while adhering to RBI's digital lending guidelines
Verify Borrower identity
Onboard borrowers with ease using our 360° Verification Suite
[For individuals and businesses] Provide an easy onboarding experience for your users by verifying their bank accounts & UPI IDs, PAN, Aadhaar and GSTIN using our APIs and dashboard.
Bank Account Verification
UPI ID Verification
PAN Verification
Revolutionize lending with Cashfree Payment's solution for NBFCs & LSPs
Cashfree Payments
Other Platforms
Time to go live
Easy to integrate and go-live in 3 weeks
Difficult to integrate. Delayed onboarding
Product Suite for different payment needs
One-stop solution. Low code APIs & dashboard access for easy loan disbursement & collections
Fragmented and siloed products. Multiple vendor integrations required
Ease of service
Dedicated support in escrow creation
Multiple points of contact
Connect multiple escrow/current accounts with single dashboard
Multiple dashboards, and limited view

Risk Mitigation

Real time risk management with powerful risk engine

Have better control on funds movement, take action, and minimize risk with real-time updates.
  • Set transaction limits

  • API level security checks

  • Fraud detection

Frequently Asked Questions


With the digitisation of lending, collaborations between entities are common. For instance, regulated entities (REs) like banks or NBFC may partner with:

  • Non-bank companies that provide Digital Lending Applications (DLAs)
  • Lending Service Providers (LSPs) that undertake sections of the lending process. These LSPs and DLAs do not provide capital nor carry credit risks. This may lead to unregistered lending and anonymised shadow lending.

Can’t use pass-through accounts for fund flow: Disbursals and collections will flow straight from the RE’s bank account to the borrower’s bank account.

BNPL models disbursing to PPI discontinued: BNPL Models that disbursed funds through PPI (prepaid cards, m-wallets) are discontinued. Funds should be disbursed directly to the bank account of the borrower.

Direct disbursals to merchants allowed for specific cases: These use cases include invoice discounting, supply chain financing, consumer durable financing, and even BNPL.

Exceptions for co-lending models: Pool accounts can be still used for for the flow of funds between multiple co-lending REs.

First Loss Default Guarantee (FLDG) use under examination: First Loss Default Guarantee (FLDG) models allow LSPs to offer a first loss guarantee up to a certain percentage of the loan, allowing it to bear some of the risk. Until further notice, arrangements need to adhere to securitisation norms.

Cashfree Payments’ tailored solution enables NBFCs to open and operate Escrow accounts with partner banks and trustees, with a dashboard and API stack for loan disbursements directly to borrowers, efficient reconciliation, borrower identity & bank account verification.

This solution will facilitate both Digital lending and Co-lending use cases and will enable both lenders and LSPs to comply with the recent guidelines on digital lending with minimal changes to their existing workflow. Cashfree Payments also enables lenders to provide seamless repayment options such as e-NACH, UPI AutoPay and identity verification products like Bank Account, GSTIN, PAN, Aadhar verification, thereby giving a full-stack solution for NBFCs and their LSPs.

An escrow account in India is a bank account with conditions on ownership of funds. In simple terms, it is a safe house for assets while the transaction process is still ongoing. An escrow agent is a mediator who holds this escrow account. Consider them an intermediary between the buyer and the seller. Interestingly, an escrow account is not just limited to funds. It can be used for different types of assets like money, stocks, funds etc.

You may need an escrow account in case of:

  • A large transaction (between two or more parties)
  • that have some legal obligations attached to them
  • which need to be fulfilled before the release of the payment or an asset.
    Here’s an example: Let’s say you are a construction builder and aim to sell apartments. Now, let’s assume that you aim to get these apartments booked by customers before they are ready to move in. Naturally, there are transaction risks.
  • The customer may not want to pay the full amount before possession
  • There is a risk of scams (money bring redirected to other avenues)
  • Customers may be wary if predetermined conditions are not fulfilled

Here’s where an escrow account in India steps in. It reduces the risk of fraud as it acts as the third party between the two parties. Moreover, it helps control the cash flow between the two parties.

Additionally, since September 2022, escrow accounts have become indispensable for co-lending use cases. According to the digital lending guidelines by RBI, all loan repayment and disbursement must be done directly between the bank account of lender and borrower. This means that no third party pass-through account can be used by banks, NBFCs or lending service providers (LSPs).

However, co-lending use cases are an exception to this rule. In other terms, co-lending players (like banks and NBFCs) can use escrow accounts to pool funds before disbursing to borrowers.

  • The buyer and the seller agree before opening the account, which involves the terms and conditions of the buying and selling assets. This agreement is the “Escrow agreement”.
  • After reviewing and signing the agreement, the buyer deposits the amount to the escrow account.
  • The escrow agent verifies and validates the receipt to both parties.
  • The escrow agent regularly monitors the buyer’s account to confirm whether or not the buyer is paying the seller as per the agreed process.
  • Subject to the positive response from both parties, the assets under the escrow agent’s control are released at the agreed event or time.
  • If there is any disagreement between the two parties, the escrow account in India will move to dispute resolution. The outcome process of the dispute resolution decides what to do with the escrow funds.

However, if you are a co-lending player (NBFC or fintech), you can directly integrate with full stack digital lending service providers, like Cashfree Payments.

This will allow you to integrate and go-live within 3 weeks.

Moreover, Cashfree Payments’ low code APIs & dashboard access can help you in easy loan disbursement & collections as well, in compliance with RBI’s digital lending guidelines.

Have more questions?

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  • Easy onboarding

  • Dedicated account manager

  • API access

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