What the key fact statement says about your bank loan
Mint Mumbai|February 16, 2024
It is a single-page document that also lists out charges levied over and above the interest rate
Aprajita Sharma

Taking out a bank loan can be a stressful experience, especially if one is not aware of the charges that could be levied by the lender over and above the loan interest rate. To be sure, some lenders do share all such charges in a key fact statement (KFS) before the loan agreement is signed, but not all borrowers keep an eye out for it. But its importance is underscored by the fact that the Reserve Bank of India (RBI) last week made it mandatory for all lenders to provide the KFS to all borrowers.

The KFS is a one-page document that contains information such as the rate of interest, loan amount, loan term, processing fees, documentation charges, foreclosure charges and late payment fee, among others. Certain categories of lenders also disclose an all-inclusive annual percentage rate (APR) and recovery and grievance redress mechanism in the KFS.

"Historically, the cost of borrowing has been opaque for many consumers.

Interest rates were prominently advertised, but the additional fees that significantly affect the overall cost were often disclosed in a less transparent manner.

هذه القصة مأخوذة من طبعة February 16, 2024 من Mint Mumbai.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة February 16, 2024 من Mint Mumbai.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من MINT MUMBAI مشاهدة الكل
India's economic performance is pretty robust on most counts
Mint Mumbai

India's economic performance is pretty robust on most counts

The economy's back on its high-growth path and fiscal consolidation is on track but our labour market remains a concern

time-read
3 mins  |
October 31, 2024
Mint Mumbai

We should be more receptive to paradigm-shifting ideas

Do we really have free will? Our brains are not wired to accept radical thoughts easily but we must try

time-read
3 mins  |
October 31, 2024
We need to invest in nature for the sake of humanity's future
Mint Mumbai

We need to invest in nature for the sake of humanity's future

Money must flow into what saves rather than harms biodiversity

time-read
3 mins  |
October 31, 2024
Is gold worth its weight amid our demat assets?
Mint Mumbai

Is gold worth its weight amid our demat assets?

It has been a buzzy buy in recent times, with its price soaring over the past year. Investors, however, are likely to be better served by going for intangible forms of this precious metal

time-read
2 mins  |
October 31, 2024
Mint Mumbai

The country needs to map its informal economy better

We need more accurate data on enterprises that play a major role in employing people

time-read
3 mins  |
October 31, 2024
Mint Mumbai

Some states have started to slip off their fiscal correction paths

Populist outlays and capital expenditure have widened their budget deficits. They must tighten up

time-read
3 mins  |
October 31, 2024
How a businessman in his 50s went gung-ho on MFs
Mint Mumbai

How a businessman in his 50s went gung-ho on MFs

From telecom retail to mutual fund: SIPs have bridged Singh's post-covid business slowdown

time-read
4 mins  |
October 31, 2024
Principal disabled? Know your PoA rights
Mint Mumbai

Principal disabled? Know your PoA rights

My father has been in coma following an accident. He had granted me a power of attorney (PoA) to manage his money, but the PoA has no specified duration. Is it legally valid for me to withdraw funds or conduct other transactions on his behalf for his medical treatment? -Name withheld on request

time-read
1 min  |
October 31, 2024
HOW SALMA HAYEK IS REDEFIMNG PHILANTHROPY
Mint Mumbai

HOW SALMA HAYEK IS REDEFIMNG PHILANTHROPY

In the worlds of Hollywood, fashion and activism, there's never been anyone quite like Salma.

time-read
9 mins  |
October 31, 2024
WORLD SAVINGS DAY: A REALITY CHECK ON INDIA'S DWINDLING HOUSEHOLD SAVINGS CRISIS
Mint Mumbai

WORLD SAVINGS DAY: A REALITY CHECK ON INDIA'S DWINDLING HOUSEHOLD SAVINGS CRISIS

High inflation and easy credit lead to financial instability due to overspending and rising debt

time-read
3 mins  |
October 31, 2024