Glossary
Penal Charges
Penal charges are fees a lender charges when a borrower breaks the loan terms, most often by paying an instalment late. They are stated in the loan agreement and the Key Fact Statement. Under RBI's digital lending rules, penal charges are shown for each offer before you accept. Paying on time and cl
Related terms: Arrears, Key Fact Statement (KFS), Loan Agreement.
Published 12 Nov 2026
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