Key Facts Statement for MSME term loans Key Facts Statement
Before you sign an MSME term loan, the lender must give you a Key Facts Statement in plain language with the annual cost of the loan, every charge and the repayment schedule.
Last updated on
- Status
- Open
- Run by
- Reserve Bank of India
What you get
- Covers all MSME term loans sanctioned on or after 1 October 2024, whatever the amount
- Shows the annual percentage rate, which includes every charge the lender levies
- Third party charges the lender collects, such as insurance and legal fees, are part of the annual rate and shown separately
- Written in a language you understand
- Valid for at least three working days on loans of seven days or more, so you have time to compare
- A charge that is not in the Key Facts Statement cannot be charged at any stage without your explicit consent
Who can apply
- Micro, small and medium enterprises.
- Term loans to MSMEs and retail term loans. Credit card dues are not covered
- Applies to commercial banks including small finance, regional rural and local area banks, co-operative banks and NBFCs
How to apply
- Ask for the Key Facts Statement before you sign the loan agreement
- Compare the annual percentage rate across lenders, not just the headline rate
- Refuse any charge that is not in the statement
In person, ask your lender for the Key Facts Statement before you sign
In Kerala, applies to every bank, co-operative bank and NBFC lending in Kerala.
Where we found this
An independent guide by The Company of Four, not a government website. Schemes change often, so check every detail on the official website before you apply. Links marked ↗ open external websites that we do not run, and we are not responsible for their content. Seen something out of date? Tell us and we will look into it.