Banking and Loan Updates That Matter to Borrowers

A Key Facts Statement, commonly abbreviated as KFS, is intended to present essential information about a loan in a standardised and accessible format for applicable credit facilities. Borrowers should review the annual percentage rate, relevant charges and other key contractual terms rather than relying on a headline interest rate. Refer to the RBI circular on KFS for Loans & Advances dated 15 April 2024 and subsequent applicable directions before publication or revision.

The RBI’s Digital Lending Directions, 2025 address important areas of lending through digital channels, including the responsibilities of regulated lenders and their service providers, required disclosures and treatment of customer data in covered arrangements. The exact application of a provision depends on the lender, product and operational model. Customers should confirm the identity of the actual regulated lender before accepting an offer.

Changes in the RBI’s policy repo rate may influence borrowing costs over time, especially for some floating-rate products. However, a policy-rate change does not automatically create the same or immediate change in every customer’s loan rate or EMI. Borrowers should check the contractual benchmark, reset frequency, lender spread and applicable communication from their lender.