Business Loan Key Facts Statement: A Borrower’s Reading Checklist

A Key Facts Statement (KFS) is a compact place to examine the economics of an eligible loan offer. A borrower should compare what arrives in the account with what must be repaid.

Five lines to read before accepting

1. Loan amount and net disbursal: distinguish the sanctioned figure from money received after permitted deductions.
2. APR and interest method: compare the annualised cost, not only a monthly rate in an advertisement.
3. All charges: processing, insurance where applicable, penal charges and other disclosed costs.
4. Repayment schedule: instalment amount, dates, total payable and effect of missed payments.
5. Cooling-off or exit terms, complaint contact and copies of the executed documents.

A practical example

If a lender sanctions ₹1,00,000 but deducts a disclosed fee before disbursal, compare costs against the net amount received and the exact repayment schedule. This is an illustration, not a quotation.

Before you act

Regulatory requirements depend on lender and product. Read the current KFS and agreement issued by your lender; ask for clarification before consent.

Official or primary reference: Reserve Bank of India FAQs. Check the latest terms at source before making a financial decision.

Use the EMI Calculator for an estimate, then compare it with the lender’s KFS.