Basics3 min read · Updated 17 October 2026
What is a KFS (Key Fact Statement)? How to read your loan's fine print
A Key Fact Statement tells you the real cost of a loan in plain words. See what it must contain, what APR means and a 10-point checklist to catch hidden charges.
What a KFS is
A Key Fact Statement is a short standard sheet that your lender must give you before you accept a loan. RBI introduced it so that borrowers see the full cost in one place, written the same way by every lender, instead of hunting through a long agreement. The lender, not an app or agent, is responsible for issuing it. It must be in a language you understand, and the lender must explain it and get your acknowledgement.
What it contains
Part 1: money terms. Loan amount, how it is paid out, tenure, EMI, whether the rate is fixed, floating or hybrid, how a floating rate is set, every fee and charge (including those collected for third parties such as insurers or valuers), the APR, and contingent charges such as penal interest, pre-payment (foreclosure) and switching charges.
Part 2: other terms. What happens if you miss payments and how recovery agents are used, how to complain, the lender's nodal grievance officer details, whether the loan can be transferred or securitised, and co-lending details.
You must also get an APR computation sheet and a repayment (amortisation) schedule for the full tenure.
APR: the number to compare
APR (annual percentage rate) is the yearly cost of the loan including all charges the lender takes, not just the interest rate. Two loans with the same interest rate can have different APRs because of processing fees and insurance. Always compare APR to APR.
A 10-point checklist
- Rate type and benchmark. Is it floating or fixed? What is the benchmark and the spread? See EBLR vs MCLR.
- APR. Is it close to the headline rate? A big gap means heavy fees.
- Processing fee. Is it a flat amount or a percentage, and is GST extra?
- Insurance. Is it optional or bundled into the loan? Can you buy your own policy?
- Pre-payment charge. It should be nil on a floating-rate home loan to an individual.
- Penal charges. What is charged for a missed EMI?
- Switching charges. What does it cost to move from floating to fixed or to change terms?
- Tenure and EMI. Do the repayment schedule and EMI match what you agreed?
- Disbursal. Is the money released in stages, and when does interest start?
- Grievance contact. Are the officer's phone and email given?
Your rights around the KFS
- You should receive it before you sign, and the terms in it should stay valid for a short window so you can compare.
- The lender cannot charge fees that are not in the KFS unless you clearly agree.
- If something in the final agreement differs from the KFS, ask the lender to correct it in writing before you sign.
Read yours in plain words
Our Loan report from your KFS reads your document inside your browser, so your papers are not uploaded. It lists the rate, the fees, the APR and flags charges that look high or unusual, and gives you questions to ask your lender.
Common questions
What is a Key Fact Statement (KFS) in a loan?
It is a standard sheet a lender must give you before the loan is final. It lists the loan amount, tenure, rate, all fees and charges, the APR, repayment schedule and key terms such as penal charges and grievance contacts.
Since when is a KFS mandatory?
RBI announced the rules on 15 April 2024 and lenders had to follow them from 1 October 2024 for retail and MSME term loans.
What is APR in a KFS?
The annual percentage rate is the yearly cost of the loan including interest and all the charges the lender takes. It lets you compare loans on the same footing.
Can a lender charge something that is not in the KFS?
Not without your clear consent. Fees that were not disclosed in the KFS should not be added later.