New Delhi, Sept. 23 -- Borrowing through personal loans is common, but loan agreements are often packed with jargon and complex clauses. This can confuse borrowers and lead to misunderstandings. To bridge this gap, lenders now provide a Key Fact Statement (KFS), a simple, transparent summary of loan details that helps borrowers clearly understand their commitments before signing.

A Key Fact Statement is a concise, easy-to-read document issued by lending institutions. It highlights the most important terms of a loan, such as:

In short, the KFS simplifies complex financial terms like amortisation, balloon payments, or floating rates into plain language. This allows borrowers to grasp the real cost of the loan quickly.

The KFS provides bo...