A KYC document checklist for small lenders

Know your customer, or KYC, means confirming that a borrower is who they say they are before you lend to them. The exact documents and the rules differ from country to country, so use this as a starting point and check the requirements that apply to you.

What to collect

• A government photo ID
• Proof of address
• A recent photograph of the borrower
• A phone number you have confirmed reaches them
• Any extra documents your own policy or local rules ask for

What to check

• The photo matches the person in front of you
• The name matches across every document
• The ID is valid and not expired
• The same ID number has not already been used for another borrower

That last check is easy to miss when records live in separate places. It is one of the first things a system can do for you automatically.

How to protect what you collect

ID numbers and scans are sensitive. If they leak, your borrowers carry the risk.

• Store ID numbers encrypted, and show only the last few digits on screen.
• Let only the people who need to see a document open it.
• Keep a record of who viewed a full ID number, and when.
• Do not keep documents in chat threads or personal phones.
• Decide how long you keep records, and delete them when that time is up.

Get consent and tell borrowers why

Tell each borrower what you are collecting, why, and how long you will keep it. Ask for their consent to contact them by phone, WhatsApp or email, and keep a record of what they agreed to.

None of this replaces advice from a lawyer or your regulator. It is a checklist for staying organised.