This is a sample, not a loan offer.

Every figure below is illustrative and invented for the purpose of explanation. It is not a quote, an approval, or an indication of terms available to you. Wingzman is not a lender. The binding Key Fact Statement is the one issued to you by the Regulated Entity named in your loan agreement.

What a Key Fact Statement is

The Key Fact Statement (KFS) is a short, standardised summary of your loan that a lender is required to give you before you accept it. It exists so that the important terms are in one place, in a form you can compare against another lender’s offer.

The single most useful line is the Annual Percentage Rate (APR), because it folds interest and every fee into one comparable number. A low interest rate with high fees shows up in the APR and nowhere else.

Part 1 — Interest rate and fees

1Loan proposal / account numberXXXXXXXXXX
2Type of loanTerm loan for purchase of a lithium-ion battery
3Sanctioned loan amount (₹)1,02,000
4Disbursal scheduleSingle tranche on completion of documentation
5Loan term24 months
6Instalment details

Type of instalment: Equated Monthly Instalment (EMI)

Number of instalments: 24

Amount of each instalment (₹): 4,897

Commencement: one month from the date of disbursal

7Interest rate and type14.00% per annum, fixed, on a reducing-balance basis
8Additional information for floating rate loansNot applicable — this is a fixed rate loan
9Fee and charges

Payable to the lender: Processing fee ₹2,000 (one time, added to the loan)

Payable to third parties: Nil in this illustration. Where applicable, insurance and statutory charges are itemised here.

10Annual Percentage Rate (APR) (%)18.10%
11Contingent charges

Penal charges on delayed payment: stated as a rupee amount or percentage

Foreclosure / prepayment charges: stated with any lock-in period

Charges for switching interest type: not applicable to a fixed rate loan

Instrument or mandate dishonour charges: stated per instance

Note how the APR of 18.10% sits well above the 14.00% interest rate. The difference is the processing fee. This is exactly why the APR is the number to compare.

Part 2 — Other disclosures

12Recovery agentsThe clause of the loan agreement dealing with engagement of recovery agents, and your right to advance notice of the identity of any agent authorised to contact you
13Grievance redressalThe clause of the loan agreement setting out the grievance mechanism, and the escalation path to the lender and thereafter to the Reserve Bank of India
14Nodal grievance redressal officer

Name, designation, telephone number, email and postal address

Wingzman’s own officer is listed on our grievance page; the lender lists theirs separately.

15Whether the loan may be transferred to another lenderStated yes or no, with the terms on which any transfer may occur
16Collaborative lending arrangementsWhere more than one regulated entity is involved, the name of each and their respective share
17Digital loans — cooling-off periodThe period during which you may exit the loan by repaying the principal and the proportionate APR, without penalty
18Lending service provider acting as recovery agentThe name and contact details of any LSP authorised to act as a recovery agent

Illustrative repayment schedule

A KFS is accompanied by a repayment schedule showing how each instalment splits between interest and principal. The first few and last few rows of the illustration above:

InstalmentOutstanding (₹)Principal (₹)Interest (₹)Payment (₹)
11,02,0003,7071,1904,897
298,2933,7501,1474,897
394,5433,7941,1034,897
239,6504,7841134,897
244,8664,866574,923

Total repayment across 24 instalments in this illustration is approximately ₹1,17,536, of which about ₹15,536 is interest. You can model your own figures with our EMI calculator.

What to check on the real one

  • The lender named on it — that is who your loan is actually with
  • The APR, and whether it is higher than the interest rate you were quoted verbally
  • Every fee, itemised, and whether any charge you were told about is missing from the list
  • The number and amount of instalments, and when the first one is due
  • Penal charges, and foreclosure or prepayment charges if you may want to close early
  • The cooling-off period, and how to use it
  • That the KFS is in a language you read comfortably

Keep your copy. If a charge appears later that is not on the KFS, that document is your evidence.

Where Wingzman fits in

Wingzman is a lending service provider, not a lender. We do not issue Key Fact Statements, set rates or take credit decisions. The KFS comes from the Regulated Entity granting your loan — see our lending partners page. Our guide to battery finance explains the document in plain language.