Home Loan: Do's and Don’ts for Onboarding Loan Application
May 05, 2025 | 4 mins read
When applying for a loan, it's essential to understand the key documents involved in the process. Two crucial documents that play a significant role in ensuring a smooth loan experience are the Most Important Terms and Conditions (MITC) and the Key Fact Statement.
When these documents are read and understood, they give you full clarity and help avoid future misunderstandings. But when ignored or mishandled, they can become the starting point of many major issues.
The MITC is a document that summarizes the key terms and conditions of your loan, usually containing its key details, costs, and obligations. It helps you understand interest rates, fees, repayment schedules, and penalties, if applicable. By reviewing the MITC, you can avoid unexpected costs and make better financial decisions.
A Key Fact Statement is a concise summary of critical loan details. It highlights important information such as loan amount, interest rate, tenure, EMI amount and discloses all applicable fees as well as customer obligations in a simple format. The KFS document helps you choose a product that aligns with your financial needs and goals.
These documents are not optional. They are mandated by the RBI and serve two clear purposes:
The MITC typically includes information such as the sanctioned loan amount, net disbursed amount, interest rate type (fixed or floating), processing fees, penal charges, EMI details, tenure, prepayment rules, and other relevant terms. The Key Fact Statement is a simplified version of this, often summarised in a tabular format, giving you a snapshot of what you are signing up for.
The Most Important Terms and Conditions (MITC) and Key Fact Statement are two essential documents that provide numerous benefits to customers. Some of the key advantages of these documents include:
By providing MITC and Key Fact Statement, lenders can ensure that customers receive a smooth, transparent, and customer friendly loan onboarding experience.
As a borrower, you deserve to understand exactly what you’re signing up for—before you sign. The MITC and Key Fact Statement are not just documents—they are your guide to knowing your loan inside and out.
When lenders share these documents properly, it builds transparency and trust. This empowers borrowers to take informed decisions and leaves minimal scope for complaints, and enhances loan onboarding experience.
If you've ever felt that loan documents are too long, too hard to understand, or arrived too late—do let your lender know, as your feedback is important. Many improvements start with customer voice.
So the next time you take a loan, take a few minutes to read these documents. Make sure you know the interest rate, the penalties, the prepayment rules—everything that could affect your repayments. Because when you’re informed, you’re in control.