The RBI’s commendable decision to extend the Key Fact Statement (KFS) mandate to encompass all regulated entities marks a pivotal stride towards fostering transparency in lending. From personal loans to MSME financing, this move ensures that borrowers are empowered with crucial information in a standardized format. By disclosing comprehensive details such as Annual Percentage Rate, processing fees, penalties, and other charges, the KFS becomes a beacon of transparency, eliminating hidden costs. This inclusive approach not only levels the playing field between traditional and digital lenders but also instills trust, enabling borrowers to make well-informed decisions about their financial commitments.
