The RBI has mandated that starting from October 1, 2024, REs are to provide Key Fact Statements (KFS) to retail borrowers and small businessmen. These KFS will contain essential details of the loan agreement, including the total cost of the loan. Each KFS will be assigned a unique proposal number and will remain valid for at least three working days for loans with a duration of seven days or more.
According to the RBI, REs are prohibited from imposing any fees or charges on the borrower that are not mentioned in the KFS, unless the borrower explicitly consents to them at any point during the loan period.
Originally published 08 May 2024
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