RBI has directed all banks and regulated entities that it all lenders will have to provide key facts statement (KFS) about the loan agreement terms, including all-inclusive interest cost to borrowers for retail and MSME loans, with effect from 1st October 2024.

Banking & Finance

RBI has directed all banks and regulated entities that it all lenders will have to provide key facts statement (KFS) about the loan agreement terms, including all-inclusive interest cost to borrowers for retail and MSME loans, with effect from 1st October 2024. This is being done in order to enhance transparency and reduce information asymmetry on financial products being offered by different regulated entities (REs), thereby empowering borrowers to make an informed financial decision. Currently, KFS is specifically mandated with respect to loans by commercial banks to individual borrowers, digital lending by RBI- (REs) and microfinance loans. The harmonised instructions shall be applicable in cases of all retail and MSME term loan products extended by all regulated entities.


     

     

     

 

     


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