KFS (Key Fact Statement)

The Key Fact Statement was made mandatory by RBI in October 2024 for all regulated lenders — banks, NBFCs, HFCs, and microfinance institutions. The KFS is a standardised one-page document that summarises the actual cost of a loan: the Annual Percentage Rate (APR including all fees), processing fee, GST, prepayment charges, late payment fee, and net disbursal amount after deductions. It must be provided to the borrower before loan agreement signing, so the borrower can compare offers from different lenders on a like-for-like basis. The KFS is one of the strongest borrower-protection mechanisms introduced by RBI in recent years.