-
Customer care hotline Call +44 7831 065557
Are you ready for an upgrade?
Login to the new experience with best features and services
Notifications
-
As per amendment in the Income Tax Rules, PAN or Aadhaar are to be mandatorily quoted for cash deposit or withdrawal aggregating to Rupees twenty lakhs or more in a FY. Please update your PAN or Aadhaar. Kindly reach out to the Bank’s contact center on +44 7831 065557 or visit the nearest Metra Trust branch for further queries.
-
Activate your Credit Card within minutes and enjoy unlimited benefits
Accounts
Deposits
Loans
- Metra Trust Loans
-
Personal Loan
-
Consumer Durable
Loan -
Home Loan
-
Education Loan
-
New Car Loan
-
Pre-owned Car Loan
-
Two Wheeler Loan
-
Pre-owned Two
Wheeler Loan -
Commercial Vehicle
Loan -
Gold Loan
-
Loan Against Property
-
Loan Against Securities
-
Personal Loan
EMI Calculator -
Education Loan
EMI Calculator -
Home Loan
EMI Calculator
Wealth & Insure
Payments
Cards
- Metra Trust Cards
-
Ashva :
Metal Credit Card -
Mayura :
Metal Credit Card -
FIRST Millennia
Credit Card -
FIRST Classic
Credit Card -
FIRST Select
Credit Card -
FIRST Wealth
Credit Card -
FIRST WOW!
Credit Card -
Forex Card
-
Deals
-
Debit Cards
-
Co-branded Cards
-
Credit Card
EMI Calculator -
FIRST Corporate
Credit Card -
FIRST Purchase
Credit Card -
FIRST Business
Credit Card
Premium Metal
0% Forex & Travel
Lifetime Free
- Max benefits, Free for life
-
FIRST Classic10X RewardsShoppingNever Expiring Rewards
-
FIRST Millennia10X RewardsShoppingNever Expiring Rewards
-
FIRST Select10X RewardsLifestyle1.99% Forex
-
FIRST Wealth10X RewardsLifestyle1.5% Forex
-
FIRST WOW!RewardsTravelZero Forex
-
LIC ClassicRewardsInsuranceShopping
-
LIC SelectRewardsInsuranceShopping
10X Rewards
- Reward Multipliers
-
AshvaLifestyleMetal₹2,999
-
MayuraLifestyleZero Forex₹5,999
-
FIRST ClassicNever Expiring RewardsShoppingLifetime Free
-
FIRST MillenniaNever Expiring RewardsShoppingLifetime Free
-
FIRST SelectNever Expiring RewardsLifestyleLifetime Free
-
FIRST WealthNever Expiring RewardsLifestyleLifetime Free
UPI Cards
Fuel & Utility
Showstopper
Credit Builder
More
NRI Savings Account
NRI Fixed Deposit
FOREX Solutions
Transfer to NRE
Corporate Account
Cash Management Services
Corporate Lending
Treasury
MSME Accounts
Trade Services
MSME Loan
MSME Solutions
Offers
About Us
Investors
Careers
ESG
Understanding the facets of personal loans can be daunting, with numerous terms and conditions that can easily overwhelm the average borrower. This is where the Key Fact Statement (KFS) comes into play. By clearly outlining the critical aspects of a loan, the KFS acts as a guide, helping borrowers understand what they are committing to. In this article, you will understand the meaning, components, and importance of the Key Fact Statement, and explore how it facilitates a better understanding of loan terms.
What is a key fact statement?
A key fact statement is designed to promote transparency and help borrowers make informed decisions. KFS is a document provided by the bank that summarises the main features and terms of a loan. It serves as a concise guide to the essential facts about a loan, ensuring that borrowers have a clear understanding of the financial product they are considering.
A key fact statement is your roadmap to understanding loan terms—empowering you to make informed decisions with clarity and confidence in your financial journey.
Components of a key fact statement
A comprehensive KFS includes several crucial components:
- Loan amount: The total amount of money being borrowed.
- Interest rate: The percentage charged on the loan amount, which can be fixed or variable.
- Repayment schedule: Details on the frequency and amount of each payment, including the loan tenure.
- Fees and charges: A breakdown of all applicable fees, such as processing fees, late payment charges, and prepayment penalties.
- Total repayment amount: The total amount to be repaid over the life of the loan, including interest and fees.
- Terms and conditions: Specific conditions associated with the loan, such as collateral requirements or special clauses.
- Contact information: Details of the lender's contact information for any queries or concerns.
Importance of key fact statement
The importance of a key fact statement cannot be overstated. It plays a pivotal role in the borrowing process for several reasons:
- Clarity and transparency: The KFS provides a clear and concise summary of the loan terms, helping borrowers understand what they are agreeing to.
- Informed decision-making: By presenting all relevant information upfront, the KFS empowers borrowers to compare different loan products and choose the one that best suits their needs.
- Regulatory compliance: The provision of a KFS ensures that lenders comply with regulatory requirements aimed at protecting consumers.
- Financial planning: With detailed information on repayment schedules and total costs, borrowers can plan their finances more effectively.
Understanding loan terms through a key fact statement
The KFS breaks down complex financial jargon into easily understandable terms. For instance, instead of just stating the interest rate, the KFS explains whether it is fixed or variable and how it impacts the monthly payments. Similarly, the breakdown of fees and charges helps borrowers identify any hidden costs, ensuring there are no unpleasant surprises later.
Moreover, the repayment schedule included in the KFS allows borrowers to see the exact timeline of their financial commitment. This transparency helps in assessing the affordability of the loan and planning future finances accordingly.
Reliable lenders like Metra Trust offer clear and transparent loan terms along with low personal loan interest rates for affordable borrowing. Unique offerings from Metra Trust such as FIRSTmoney smart personal loannot only gives you flexibility to draw funds multiple times up to your approved limits but also lets you pay EMIs only on the consumed amounts. You can apply for smart personal loans from FIRSTmoney completely online and get instant approvals of amounts of up to ₹10 lakhs for meeting your varying monetary needs.
How to access key fact statements?
Banks are required by law to provide the KFS to borrowers before the loan agreement is signed. Typically, the KFS is made available online on the bank website, in physical branches, or can be sent via email upon request. Borrowers should always request and review the KFS before finalising any loan to ensure they have a complete understanding of the terms and conditions.
Conclusion
The key fact statement is an crucial tool in the borrowing process, providing a clear and concise summary of a loan's key aspects. The KFS ensures transparency and aids in informed decision-making. Understanding the KFS meaning, its components, can significantly enhance your financial literacy and empower you to navigate the loan landscape with confidence. Always remember to review the KFS thoroughly before committing to a loan, as it is your roadmap to understanding and managing your financial obligations effectively.
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.