Personal Loan
What Is a Key Fact Statement (KFS) and Why It Matters
NeerCred Team · 11/4/2025
A Key Fact Statement (KFS) is a standardised, mandatory disclosure document that regulated lenders and digital lending platforms in India are required to provide before you accept a loan, laying out the complete, all-inclusive cost and terms in one place.
What the KFS typically includes
Per RBI's Digital Lending Directions, a KFS should include details such as the Annual Percentage Rate (APR) - an all-inclusive cost figure covering the interest rate plus one-time charges like the processing fee - the recovery mechanism, details of a designated grievance redressal officer for digital lending-related complaints, and the cooling-off/look-up period during which you can exit the loan.
Why the APR matters more than the headline interest rate
Two loans with the same advertised interest rate can have different real costs once processing fees and other one-time charges are factored in. The APR is designed to be the single number that lets you compare offers on a like-for-like basis, rather than being misled by a low headline rate that hides a high processing fee.
The cooling-off period
Regulated digital lenders are required to give borrowers a cooling-off (or look-up) period - a minimum of 3 days for loans with a tenor of 7 days or more, and 1 day for shorter-tenor loans - during which you can exit the loan by repaying just the principal and the applicable proportionate APR, without additional penalty (though a disclosed, reasonable one-time processing fee can still be retained if it was already factored into the APR calculation upfront).
Why you should actually read it, not skim it
The KFS exists specifically so you don't have to dig through a full loan agreement to understand the real cost and terms. Skimming past it defeats the entire purpose of the disclosure - it's worth the two or three minutes it takes to read before accepting any offer.
Sources: RBI Digital Lending Guidelines summary — ksandk.com, RBI Digital Lending borrower protections — Kinara Capital
NeerCred is a multi-lender marketplace, not a lender — we match you with regulated partner banks and NBFCs, who make the actual lending decision. No fees are charged by NeerCred; any lender deduction or charge is disclosed by the lender in the Key Fact Statement (KFS) and loan agreement before you proceed. See how it works and our compliance & disclosures for full details.