Published: 2026-10-25 · Reviewed: 2026-10-25
Personal-loan costs in India: read the KFS before applying
An advertised interest rate is not the amount you will repay. Start with the lender’s Key Facts Statement (KFS) and compare the same amount and repayment period. This guide is educational, not an offer or a personalised recommendation.
Check who actually lends the money
A loan app, comparison service and legal lender can be different businesses. Identify the bank or non-bank lender named in the documents, its contact details and complaint channel before supplying identity or banking information. A familiar logo alone does not establish who is responsible for the loan.
Compare the amount disbursed, not only the headline limit
Write down the loan principal, any charges deducted before disbursement and the amount reaching your bank account. A larger approved amount does not necessarily mean more usable money. Compare offers using the same net amount and dates, and confirm that any processing fee or tax is included in the disclosed cost.
Use APR and the repayment schedule together
Read the APR stated in the KFS alongside the nominal interest rate, processing charges, applicable taxes and total amount payable. Do not multiply a daily promotional rate by 365 and call it APR: payment timing and fees matter. For instalment loans, add every scheduled payment and any separately payable mandatory charge. Check that the total agrees with the document.
Separate normal repayment from exceptional charges
Ask which charges are mandatory for the proposed loan and which apply only after a late payment, early closure or another event. Record both groups, but do not mix a hypothetical late-payment penalty into the normal repayment example. If insurance or another service is presented, check whether it is optional before agreeing.
Keep a copy and resolve mismatches first
Save the KFS, agreement, payment schedule and lender contact details before confirming. If the app screen and document disagree, ask the lender to clarify the exact rupee amounts and dates. Credavix’s calculator can illustrate simple interest with values you enter, but cannot replace the KFS or calculate a regulated APR from incomplete information.
Your comparison worksheet
- legal lender and complaint contact
- principal and net rupees disbursed
- APR and nominal-rate period
- processing fees, taxes and other mandatory charges
- every instalment date and total repayment
- late-payment and early-closure conditions