Key Fact Statement KFS for Loans: RBI Rules - citizen guide 2026

For every retail or MSME term loan sanctioned on or after 1 October 2024, your bank must hand you a Key Fact Statement (KFS) that shows the Annual Percentage Rate (APR) and a computation sheet. Any charge not listed in that KFS cannot be levied later without your consent.

If you are short on time, jump to the step-by-step below and ask for the KFS in writing before you sign anything.

A Key Fact Statement is a short, standardised document a lender gives a borrower before sanction. It lists the loan amount, interest rate, the Annual Percentage Rate (APR), all fees, and the total cost of the loan in one place. RBI prescribes its format so borrowers can compare offers easily.

The rule comes from the RBI circular RBI/2024-25/18, DOR.STR.REC.13/13.03.00/2024-25, dated 15 April 2024. It applies to all new retail and MSME term loans sanctioned on or after 1 October 2024.

Three things the circular makes binding:

• The KFS must show the Annual Percentage Rate (APR) plus a computation sheet, in a standard format.
• Any charge not listed in the KFS cannot be recovered from you at any later stage without your consent.
• Credit-card receivables are excluded from this circular, so card dues do not get a KFS under this rule.

The Reserve Bank of India is a public authority under the RTI Act, 2005, §2(h), and so are public-sector banks like the State Bank of India and Punjab National Bank. That means you can use an RTI application to get your own loan papers, the KFS, and the sanction note. The Banking Ombudsman is a separate complaint route for redress, not an RTI channel.

1. Ask for the KFS in writing before you sign the sanction letter. It is your right for any loan dated on or after 1 October 2024.
2. Read the APR first. The APR folds the interest rate plus most fees into one yearly percentage, so it is the truest cost of the loan.
3. Match the computation sheet line by line against what the sales staff told you. Question any fee you were not told about.
4. Keep the signed KFS. If the bank later adds a charge that is not on it, you can refuse it because consent was never taken.
5. If the bank refuses to share the KFS or adds a hidden charge, file an RTI to the bank's Public Information Officer (PIO) for the KFS, the APR sheet, and the sanction note.
6. If RTI gives no reply in 30 days or an evasive one, file a first appeal within 30 days of that deadline.

• Loan account number or application reference number.
• A copy of the sanction letter, if already issued.
• The KFS itself, if you received one.
• Your identity proof as the account holder.
• Postal order or fee receipt for the RTI application.

• Signing the sanction letter without reading the KFS, then disputing a fee later with no proof.
• Comparing only the interest rate. Two loans with the same rate can have very different APRs once fees are added.
• Assuming the rule covers credit cards. Credit-card receivables are excluded from this circular.
• Paying a charge that is not on the KFS. Under the 15 April 2024 circular such a charge needs your consent first.
• Treating the Banking Ombudsman as an RTI tool. It is an escalation for redress, not an RTI route under the RTI Act, 2005.

If a public-sector bank hides your KFS or sneaks in an undisclosed charge, an RTI to its PIO is the fastest paper trail. Banks are public authorities, so they must reply in 30 days.

To,
The Public Information Officer
[Name of public-sector bank, branch and address]

Subject: Request for information under the Right to Information Act, 2005

Sir/Madam,
Under Section 6(1) of the RTI Act, 2005, please provide the following for my loan account number ____________:
1. A certified copy of the Key Fact Statement (KFS) issued for this loan.
2. The Annual Percentage Rate (APR) computation sheet for this loan.
3. A copy of the sanction note and the schedule of charges applied to this account.
4. The basis and date of consent taken for any charge levied that is not listed in the KFS.

I am depositing the prescribed fee of ₹10 under Section 7(1). If any part is held exempt, please sever it and release the rest under Section 10. If this office is not the right one, please transfer this request under Section 6(3) and inform me.

Yours faithfully,
[Name, address, phone, date]

It is a short, standard-format document your lender must give you before sanction. It states the loan amount, interest rate, the Annual Percentage Rate (APR), all fees, and the total cost in one place, so you can compare offers and see the real price of the loan.

All new retail and MSME term loans sanctioned on or after 1 October 2024, under the RBI circular dated 15 April 2024. Credit-card receivables are excluded from this circular, so card dues do not get a KFS under this rule.

No. Under the 15 April 2024 circular, any charge not listed in the KFS cannot be recovered from you later without your consent. If a hidden fee appears, you can refuse it and ask for a refund, since consent was never taken.

The Annual Percentage Rate (APR) folds the interest rate plus most fees into a single yearly percentage. It shows the true cost of borrowing. Two loans with the same headline interest rate can have very different APRs once fees are counted, so compare APRs, not just rates.

Yes, if the lender is a public authority. Public-sector banks like the State Bank of India and Punjab National Bank are public authorities under the RTI Act, 2005. File an RTI to the bank's PIO for the KFS, the APR sheet, and the sanction note. Reply is due in 30 days.

No. The Banking Ombudsman is a redress route for complaints about banking service. RTI is a separate right to get information held by a public authority. You can use RTI to gather your loan papers first, then escalate to the Ombudsman if needed.

The circular covers regulated entities that give retail and MSME term loans, which includes banks and NBFCs. But RTI works only against public authorities. For a private lender you cannot file an RTI, though the KFS disclosure duty still applies to them.

• Reserve Bank of India - circular RBI/2024-25/18, DOR.STR.REC.13/13.03.00/2024-25, dated 15 April 2024: https://www.rbi.org.in
• Right to Information Act, 2005: https://www.indiacode.nic.in
• Reserve Bank of India official site: https://www.rbi.org.in

• Draft your RTI in minutes: https://righttoinformation.wiki/tools/ai-rti-draft-app.html
• Build a first appeal if the bank stays silent: https://righttoinformation.wiki/tools/first-appeal-app.html
• File an RTI by voice with AwaazRTI: https://righttoinformation.wiki/tools/awaaz-rti.html
• Read the full The RTI Playbook for end-to-end guidance.