Loan APR & KFS Checker

Before you sign: a KFS checklist

RBI's rules give you a Key Facts Statement for every new retail or MSME term loan, and at least three working days to decide (for loans of seven days or more). Don't let anyone rush you. Go through this list first:

• You have the KFS, in a language you understand. RBI's rules require it, and the lender must explain it and get your acknowledgement.
• The APR includes every charge. Enter the KFS numbers in the checker above: our APR and the KFS APR should match.
• Every fee has an amount. Processing fee, documentation, stamp duty, legal and valuation charges. Anything not in the KFS can't be charged later without your explicit consent.
• You know whether insurance is optional. Ask what it covers, who the insurer is, and what happens to it if you close the loan early.
• You've read the contingent charges. Penal charges for late payment, bounce charges, and foreclosure or part-payment charges. Floating-rate loans to individuals for non-business purposes have no foreclosure charges.
• The EMI matches the repayment schedule. The schedule is part of the KFS. Check the EMI and the number of instalments.
• You know the amount you'll actually receive. Loan amount minus the charges deducted at disbursal. Check your bank statement after it's credited.
• You have the grievance officer's phone and email. The KFS must list them. Keep the KFS: it's the document you'll rely on if there's a dispute.
• For app loans: you know the cooling-off period. Digital loans have a cooling-off period, shown in the KFS, when you can exit without a prepayment penalty.

Already signed and something doesn't match? See charged more than your KFS says for a ready letter and how to escalate.

Worked example

A ₹5 lakh personal loan at 12% for 3 years, with a ₹11,800 processing fee (2% + GST) and ₹8,000 of loan insurance:

The 12% loan really costs 14.83% a year. If its KFS showed an APR close to 12%, the charges wouldn't have been counted, and that's worth questioning.

If something doesn't add up

1. Ask the lender, in writing, for a breakup of every charge and deduction, and the repayment schedule.
2. Ask for a refund of anything charged that isn't in the KFS and that you didn't explicitly agree to.
3. If it isn't resolved within 30 days, complain to the RBI Ombudsman at cms.rbi.org.in. Our hidden charges help page has a ready letter, and shows how to keep proof and escalate.

How we calculate

• EMIs on a reducing balance at a fixed rate for the whole tenure.
• All charges are paid at the start (or deducted from the disbursal).
• APR is the monthly rate at which the EMIs repay the amount you receive, × 12, like RBI's KFS illustration. Lenders may round the EMI or count the first month differently, so small differences (up to about 0.25%) are normal.

Frequently asked questions