What a KFS is
A Key Fact Statement, or KFS, is a short summary of the main terms of a loan, written in a standard format. In India, lenders regulated by the Reserve Bank of India must give you one before you sign the loan agreement, so you can read the cost of the loan in plain figures rather than hunt for it in a long contract.
Because the format is standard, the KFS is also the easiest way to compare two loan offers side by side.
What you will find in it
| In the KFS | What it tells you |
|---|---|
| Loan amount | What you are borrowing (the principal). |
| Interest | The rate, how it is charged, and the total interest over the loan. |
| Fees and charges | For example a processing fee, with GST shown. |
| Net amount disbursed | What actually reaches your bank account after any deductions. |
| Total amount payable | Everything you will repay: principal, interest and charges. |
| APR | The annual percentage rate: the all-in yearly cost of the loan, including fees. |
| Repayment schedule | How many instalments, how much each one is, and when they are due. |
| Charges if you pay late | What is added if an instalment is missed or late. |
| Grievance redressal | Who to contact if you have a complaint, and how to escalate it. |
For digital loans the KFS also states the cooling-off (look-up) period: a window after the loan starts during which you can exit by repaying the principal and the proportionate cost, without a penalty. The KFS says how long that window is.
Why the APR matters
The interest rate alone does not tell you what a loan costs. Two loans with the same rate can cost different amounts if one has a higher processing fee. The APR folds the interest and the other charges into one yearly figure, so it is the fairest single number to compare.
How to read yours
- Check the loan amount and the net amount disbursed. If they differ, the KFS shows what was deducted and why.
- Look at the total amount payable. That is the real cost of borrowing, in rupees.
- Read the repayment schedule: the number of instalments, the amount of each and the due dates. Make sure the dates suit when your money comes in.
- Note the charges for paying late, so there are no surprises if a payment slips.
- Find the grievance contact, in case you need it later.
Your KFS at TrustLender
Interest, fees and the total you repay are on screen before you apply, and again in your Key Fact Statement before you sign.
- The amount, EMI, interest, fees and total repayment
- Every EMI and due date before you sign
- The Key Fact Statement to read: nothing is final until you accept
- Prepay any time without a prepayment penalty