What is a Key Fact Statement (KFS)?

Short answer

A Key Fact Statement (KFS) is a standard, plain-language summary of a loan that the lender must give the borrower before signing. It shows the loan amount, the all-in Annual Percentage Rate (APR), the EMI schedule, all fees and charges, recovery and grievance details, and any cooling-off period. RBI made the KFS mandatory for all retail and MSME term loans from 1 October 2024.

Hindi mein samjhiye

Key Fact Statement loan ka ek chhota summary document hai. Isme asli saalana cost (APR), EMI, saari fees, aur complaint kahan karni hai, sab likha hota hai. Loan sign karne se pehle KFS dhyan se padhiye. Jo charge KFS mein nahi hai, woh baad mein lagaya nahi ja sakta.

What a KFS contains

Loan amount, tenure and instalment schedule.
APR: the all-in annual cost including interest and fees. See APR.
Every fee and charge, including third-party charges collected on the lender's behalf.
Recovery agent and collection details, and the grievance officer's contact.
The cooling-off or look-up period, if any.

Charges not disclosed in the KFS cannot be levied later without the borrower's explicit consent.

Why it matters

Borrowers can compare offers on one number (APR) instead of a headline 'flat rate'. For lenders, KFS generation has to come from the same system that computes the schedule, or the document and the actual loan drift apart. That's a loan management system job.

Common questions

What is a key fact statement in a loan?

A standard summary document the lender must give before you sign, showing APR, EMIs, all fees, recovery and grievance details.

Is KFS mandatory?

Yes. RBI made it mandatory for all retail and MSME term loans from 1 October 2024.

Key fact statement kya hai?

KFS loan ka summary hai jisme APR, EMI aur saari fees likhi hoti hain. Loan lene se pehle yeh milna zaroori hai.

APR (Annual Percentage Rate)APR (Annual Percentage Rate) is the total yearly cost of a loan, expressed as a percentage.Cooling-off (look-up) periodThe cooling-off (or look-up) period is a window right after a digital loan is disbursed.FLDG / DLG (Default Loss Guarantee)FLDG (First Loss Default Guarantee) is an arrangement where a fintech or lending partner promises to absorb a lender's losses on a loan portfolio up to a set amount.

ZyroAI products for this: Loan Management System.

Written by the ZyroAI team for people building in Indian BFSI. Regulatory rules change, so for binding requirements check the current RBI, NPCI, UIDAI or relevant regulator circular. Last updated 2026-09-24.

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