Legal Constitution defines the borrower’s legal form and determines how the lender should verify ownership, authority, liability, and documentation. In MSME lending, a proprietorship, partnership firm, LLP, company, trust, society, or individual borrower requires different KYC documents, signing authorities, resolutions, guarantees, and charge-creation steps. For example, a company loan may need board resolutions and ROC checks, while a partnership loan may need the partnership deed and partner authorisations. This field matters because wrong constitution can make documents defective or approvals incomplete. It also affects beneficial ownership, succession risk, tax profile, and legal recovery. The common caution is to verify constitution from current registration documents and update it if the business has converted from one form to another.