The move to extend the Key Fact Statement (KFS) to cover all retail and MSME loans is a welcome step towards greater transparency in lending, helping customers understand their overall financial liability before taking a decision. At the moment, loans and advances have components of fees and charges such as processing fees, documentation charges, etc. besides the rate of interest. The KFS will provide essential information such as all-inclusive annual percentage rate (APR) and recovery and grievance redress mechanism to the borrowers, enabling them to get a complete picture and bring much confidence and awareness to borrowers like MSMEs. Currently, KFS is specifically mandated in respect of loans by scheduled commercial banks to individual borrowers, digital lending by REs and microfinance loans.