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Guide · Loan costs

What are APR and the Key Fact Statement?

APR (Annual Percentage Rate) is the total yearly cost of a loan, including interest and fees, shown as a percentage. The Key Fact Statement (KFS) is a short, standard document that RBI requires every lender to give you before you sign a retail loan; it shows the APR, EMI, tenure, all fees and the recovery and grievance details. Always compare APRs, not just interest rates.

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Interest rate vs APR

The interest rate covers only interest. APR adds processing fees and other charges, so it shows the real cost. Two loans with the same interest rate can have very different APRs.

What to check in the KFS

  • APR — the true yearly cost
  • EMI amount, number of EMIs and tenure
  • Processing fee and other charges
  • Late payment and foreclosure charges
  • Cooling-off period and grievance officer details

Frequently asked questions

Is a KFS mandatory?

Yes. RBI requires lenders to give a KFS for retail and MSME loans before the agreement is signed.

Can a lender charge a fee not in the KFS?

No. Charges not disclosed in the KFS cannot be levied without your explicit consent.

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Finriseo is a loan comparison platform, not a lender. Loans are given by RBI-registered NBFCs and are subject to their approval, rates and terms.

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