Key Fact Statement
Also called KFS
A standard summary a lender must give before a loan, showing its full yearly cost and every charge.
A Key Fact Statement, or KFS, is the one page to read before any loan. RBI requires it on retail term loans, and it shows the APR, every fee and the repayment schedule in a standard format. A charge left out of it can’t be added later without your consent. See it in action in car loan basics.
Questions people ask
What is a Key Fact Statement for a loan?
It's a short, standard document a lender must give you before you sign. It shows the annual percentage rate (APR), all fees and charges, and a repayment schedule, in a format set by the RBI, so loans are easy to compare.
Which loans need a Key Fact Statement?
Under an RBI circular of 15 April 2024, all new retail and MSME term loans sanctioned from 1 October 2024 by banks and NBFCs must come with one. Credit card dues are exempt.
Can a lender charge a fee that is not in the Key Fact Statement?
No. RBI's rules say charges not mentioned in the KFS cannot be levied during the loan without your explicit consent. For loans of seven days or more, the KFS must stay valid for at least three working days, giving you time to compare.
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