Highlights

  • RBI extends Key Fact Statement requirement to all retail and MSME loans
  • Banks to offer loans at a rate that includes the entire cost of the loan
  • Consumers to know interest rate, fees and charges levied

Latest news

Out on bail, rape accused shoots 25-yr-old victim in Rajasthan

Out on bail, rape accused shoots 25-yr-old victim in Rajasthan

Gold, Silver Price Today February 26, 2024: Check Latest Rates in Mumbai, Delhi, Chennai, Bengaluru

Gold, Silver Price Today February 26, 2024: Check Latest Rates in Mumbai, Delhi, Chennai, Bengaluru

US-based Indian woman loses life savings in 'pig butchering' scam via Hinge

US-based Indian woman loses life savings in 'pig butchering' scam via Hinge

Wordle 982 Hints and Answer for February 26, 2024: Crack the code, conquer the challenge!

Wordle 982 Hints and Answer for February 26, 2024: Crack the code, conquer the challenge!

 Latest NSSO consumer survey indicates poverty down to 5 per cent: NITI Aayog CEO

Latest NSSO consumer survey indicates poverty down to 5 per cent: NITI Aayog CEO

Quordle 763 Hints and Answers for February 26, 2024: Sharpen your mind

Quordle 763 Hints and Answers for February 26, 2024: Sharpen your mind

Delhi CM Arvind Kejriwal skips ED summons for 7th time

Delhi CM Arvind Kejriwal skips ED summons for 7th time

Registration for DDA luxury house begins; check details here

Registration for DDA luxury house begins; check details here

RBI MPC Meet: Banks to make the entire cost of loan transparent

All the banks will have to offer loans at a rate that includes the entire cost of the loan, by which Consumers will get to know the interest rate, fees and charges levied on all retail and MSME loans

RBI MPC Meet: Banks to make the entire cost of loan transparent

The RBI in its MPC meet has taken a key decision regarding the transparency of loan cost by extending the Key Fact Statement requirement. All the banks will now have to offer loans at a rate that includes the entire cost of the loan, not just the interest rate itself but also other costs such as processing fees, documentation charges etc. This would apply to all retail and MSME loans.

Loan cost

This would help the consumers to know how much interest they are paying and how much fees and other charges are levied on them. Governor Das stated that it is imperative for banks to inform borrowers about the complete cost of a loan, including all fees and additional charges.

Key Fact Statement

Key Fact Statement for retail and MSME loans is designed to provide customers with a clear understanding of the actual annualised interest rate and the overall financial commitment associated with the loan.

Also Read: HDFC Bank hikes MCLR by upto 10 bps; here's how your loan EMIs will be impacted

Even if there are any penalties, the customers should know how much it will come to. Fintech and other entity are also liable to provide all this information in a standard prescribed format


Up Next

RBI MPC Meet: Banks to make the entire cost of loan transparent

RBI MPC Meet: Banks to make the entire cost of loan transparent

Gold, Silver Price Today February 26, 2024: Check Latest Rates in Mumbai, Delhi, Chennai, Bengaluru

Gold, Silver Price Today February 26, 2024: Check Latest Rates in Mumbai, Delhi, Chennai, Bengaluru

 Latest NSSO consumer survey indicates poverty down to 5 per cent: NITI Aayog CEO

Latest NSSO consumer survey indicates poverty down to 5 per cent: NITI Aayog CEO

Gold, Silver Price Today February 23, 2024: Check Latest Rates in Mumbai, Delhi, Chennai, Bengaluru

Gold, Silver Price Today February 23, 2024: Check Latest Rates in Mumbai, Delhi, Chennai, Bengaluru

Registration for DDA luxury house begins; check details here

Registration for DDA luxury house begins; check details here

Government aims for record road construction in FY24

Government aims for record road construction in FY24

More videos

Investors oust Raveendran; Byju's calls decision invalid

Investors oust Raveendran; Byju's calls decision invalid

Paytm crisis: RBI announces roadmap to ensure smooth transition for users with @paytm handles

Paytm crisis: RBI announces roadmap to ensure smooth transition for users with @paytm handles

Indian semi-conductor stocks rally after Nvidia's record gain

Indian semi-conductor stocks rally after Nvidia's record gain

Kia announces voluntary recall of over 4,300 Seltos cars in India

Kia announces voluntary recall of over 4,300 Seltos cars in India

Maharashtra FDA cracks down on McDonald's for using cheese substitutes

Maharashtra FDA cracks down on McDonald's for using cheese substitutes

Byju's investors file oppression, mismanagement suit against co-founder Raveendran at NCLT

Byju's investors file oppression, mismanagement suit against co-founder Raveendran at NCLT

Yulu raises $19.25 million from Magna, Bajaj Auto to fuel expansion plans

Yulu raises $19.25 million from Magna, Bajaj Auto to fuel expansion plans

Paytm app downloads plummet after RBI restrictions; BHIM UPI sees 49% surge

Paytm app downloads plummet after RBI restrictions; BHIM UPI sees 49% surge

Invest Smart: Expert guide for first-time mutual fund investors

Invest Smart: Expert guide for first-time mutual fund investors

Goldman Sachs downgrades SBI, ICICI, Yes Bank, says headwinds intensifying for financial services

Goldman Sachs downgrades SBI, ICICI, Yes Bank, says headwinds intensifying for financial services

Editorji Technologies Pvt. Ltd. © 2022 All Rights Reserved.