Udhara

Udhāra, also spelled udhaar or udhar, is a Hindustani term referring to credit, a loan, or goods supplied with an agreement of deferred payment. In everyday usage, udhaara denotes informal lending between family, friends, retailers, and customers, where items or money are provided with the expectation of repayment at a later date. The term is widely used in Hindi, Urdu, and Punjabi, and appears in many regional languages of the Indian subcontinent.

Usage and forms: People say udhaar par lena (to borrow on credit) and udhaar par dena (to lend on credit). A merchant might extend udhaara to a regular customer, with or without a written receipt. In modern contexts, formal businesses may keep records of udhaar balances, and terms can be documented as promissory notes or purchases on credit.

Economic and social context: Udhaara arrangements play a significant role in informal economies, small-scale trade, and family networks, enabling exchange in the absence of formal credit. They carry risks, including defaults and social pressure, and can contribute to debt cycles if not managed carefully. In many communities, udhaar is seen as a social obligation as much as a financial transaction.

Legal and regulatory aspects: There is no separate legal status for udhaar; it falls under general contractual and debt laws when formalized. Many jurisdictions regulate lending practices, interest, and consumer protections, but informal udhaar arrangements often operate outside formal oversight.

Variations and related terms: Spelling variations reflect transliteration differences. A person who provides credit may be described as udhaar dene wala or udhaari in some dialects. The concept relates to broader notions of credit, debt, and microfinance.