What is Udhaar?
English Equivalent: Informal Credit
Short Definition
Udhaar is the informal South Asian credit system where goods or money are provided on trust, to be paid back later.
Detailed Explanation
In Pakistan, "Udhaar" is the lifeblood of the informal economy. Shopkeepers routinely provide groceries to neighborhood families on udhaar, settling the balance at the end of the month when salaries are paid. Similarly, individuals lend udhaar to friends and family. Tracking udhaar historically required paper notebooks (Khata), but is now managed digitally through offline mobile apps to prevent mathematical errors and lost records.
How it relates to digital finance apps:
Jumble allows users to track Udhaar digitally per person, ensuring you never forget who owes you money or how much you owe the shopkeeper.
Related Terms
Track Your Udhaar Digitally
Download Jumble to track expenses, udhaar, and budgets offline for free.
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