It has been decided in the RBI MPC that now banks will have to give fact sheets to retail and MSME customers taking loans. This will bring more transparency in the banking system.
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Relief news came for the customers taking loan in RBI MPC. RBI Governor Shaktidas said that now banks will have to give Key Fact Sheet (KFS) to retail and MSME customers taking loans. In this KFS, banks have to include the loan charges in the interest rate itself. This is being considered as a big relief for the loan taking customers.
Benefits of Key Fact Sheet
A ‘Key Fact Sheet’ is a document. The bank informs the person taking the loan about all the charges related to his loan. It also tells you what type of loan you have. The main objective of bringing the fact sheet is to bring more transparency in the banking system. Because it has been seen many times that some banks charge arbitrary charges from customers for loans.
Interest Rate: The fact sheet contains complete information about interest rates. Apart from the interest charged on the loan, it also contains information about extra interest rate and penalty on delay in installment. It is also mentioned whether your loan is on fixed or floating interest rate.
Fees and Charges: Complete information about fees and charges is given in the fact sheet. Like how much the bank is charging for the loan process. If you make repayment, how much will you have to pay?
Loan Repayment: The fact sheet also mentions the terms and conditions of loan repayment as to when you can repay the loan. What charges will you have to pay at this time?
Dispute Settlement: If there is any dispute between the bank and you due to any reason like non-payment of loan, delay in installment etc., then how will it be settled. Its process is also given in its fact sheet.
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