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📋 Key Fact Statement (KFS) – Your Right to Full Loan Disclosure Before You Borrow
📅 Updated: June 2025 | 🔐 RBI-Compliant Lending | 📜 Transparent Loan Terms | ⚡ Powered by Vizzve Financial
🔍 What is a Key Fact Statement (KFS)?
The Key Fact Statement (KFS) is a mandatory document that all RBI-registered digital lenders and NBFCs must provide to borrowers before disbursing any loan.
It includes all critical loan terms in a simple, readable format, ensuring the borrower knows exactly what they’re signing up for.
Introduced under RBI’s Digital Lending Guidelines (2022–2025), the KFS prevents hidden charges, misleading rates, and harassment by fake apps.
✅ What Must a KFS Include?
| Component | Description |
|---|---|
| 📈 Annual Percentage Rate (APR) | Total cost of the loan (including interest, processing fees, etc.) shown as a yearly percentage. |
| ⏳ Loan Tenure | Exact number of months/weeks the loan must be repaid over. |
| 💰 Processing Fees | Any charges levied for processing the loan application. |
| 📉 Interest Rate | Clearly mentioned monthly or annual interest rate (flat/reducing). |
| 💼 Prepayment/Foreclosure Charges | Fees (if any) for early repayment or foreclosure. |
| 📋 Total Loan Cost | Total repayment amount = Principal + Interest + Charges. |
Borrowers must receive this KFS before accepting or signing the loan.
⚠️ Why the KFS is Crucial for Borrowers
Too often, borrowers are:
Misled by “0% interest” ads
Hit with high hidden fees
Unaware of foreclosure penalties
Without a KFS, you risk:
❌ Overpaying
❌ Defaulting unknowingly
❌ Getting trapped in predatory loans
The KFS brings full transparency and allows you to compare lenders easily.
🔐 Vizzve Financial – 100% Transparent Loan Platform with Pre-KFS
At Vizzve Financial, every borrower gets a digital KFS upfront before loan disbursal:
✅ APR + interest clearly mentioned
✅ No hidden charges
✅ Processing + prepayment fees disclosed
✅ Loan agreement + KFS sent via email & dashboard
🎯 Our Promise: No Surprises. Just Clarity.
📌 Borrower Tips: What to Check in Your KFS
☑️ Does the APR seem reasonable?
☑️ Are all charges (processing, late fee, etc.) mentioned clearly?
☑️ Does the interest rate match what you were promised?
☑️ Is the KFS easy to understand?
If the answer is NO → Ask for a revised KFS or walk away.
📢 RBI’s Statement on KFS (2025 Update)
"Loan service providers must present a Key Fact Statement to the borrower before any disbursal. This ensures borrower awareness, informed consent, and fair lending practices."
— RBI Guidelines on Digital Lending, 2025
🧠 Final Words: Borrow Smart, Borrow Safely
Never borrow without reading the Key Fact Statement (KFS). It’s your legal right and your financial shield. Trusted lenders like Vizzve Financial provide clear terms, RBI-compliant practices, and a borrower-first experience.
Key Fact Statement KFS
RBI Digital Lending Rules 2025
APR loan disclosure India
Pre-loan agreement terms
Safe NBFC personal loans
Loan without hidden charges
Transparent loan apps India
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