What the KFS is
A Key Fact Statement is a standardised summary that every regulated lender must give you before you sign a loan agreement. It is designed so you can understand the loan and compare offers without reading the full agreement.
Loan amount and amount credited
The sanctioned amount is what you owe. The net disbursed amount is what reaches your bank after fees and GST are deducted. Check that the net amount covers your need.
Interest rate and type
This shows the rate, whether it is per annum or per day, and whether it is fixed or floating. Short-term digital loans are usually fixed.
Fees and charges
Processing fee, GST and any other charges payable to the lender or its partners are listed here, including any payable to the LSP. Nothing that isn't listed in the KFS can be charged to you.
APR
The all-inclusive annual cost. Use this, not the interest rate, to compare loans.
Repayment schedule
The number of instalments, the amount of each and the due dates. Make sure the dates suit your salary date. Ask to change them if not.
Contingent charges
Late-payment charges, bounce charges and prepayment or foreclosure charges. These don't count in the APR but can be significant.
Cooling-off period
The number of days after disbursal during which you can exit the loan by repaying the principal and proportionate APR, with no penalty.
Recovery and grievance details
The KFS names the recovery agents, if any, and the lender's Grievance Redressal Officer with contact details. Keep a copy — you'll need it if something goes wrong.
If anything in the KFS differs from what you were told, don't sign. Ask the lender to explain or correct it.