New Delhi, April 16 -- In a move to empower borrowers and promote informed financial decision-making, the Reserve Bank of India (RBI) has issued comprehensive guidelines regarding Key Facts Statements (KFS) for retail and MSME term loans.
These guidelines, applicable from October 1, 2024, aim to harmonise instructions across all regulated entities, including banks, cooperative banks, and non-banking financial companies.
The KFS is a standardised statement that lenders must provide to prospective borrowers, outlining the key facts of a loan agreement in simple, easy-to-understand language.
Industry bodies like Federation of Indian Micro and Small & Medium Enterprises (FISME) have consistently raised voice against hidden charges and...