Key Fact Statement (KFS)

The Reserve Bank of India (RBI) has mandated that all regulated entities provide a Key Fact Statement (KFS) to retail and micro, small and medium enterprise (MSME) borrowers.

  • The KFS should contain essential information such as the all-inclusive Annual Percentage Rate (APR) and recovery and grievance redress mechanisms.
  • The KFS is specifically mandated for loans by scheduled commercial banks to individual borrowers, digital lending by regulated entities, and microfinance loans.
  • A Key Fact Statement (KFS) is a document that thoroughly lists lending terms.
  • It has key information regarding a loan agreement, including the all-in-cost of the loan, in a simple and easy-to-comprehend format.

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