How do you provide a vernacular KFS to the borrower

The new RBI KFS Rules mandate that the Key Fact Statement (KFS) be provided in a “language understood by the borrower.” This means you need to meet your customers where they are—linguistically. 

Read our detailed analysis of this requirement in this post.

Imagine running a lending operation in a city like Bangalore or Bombay. Here, different borrowers in a 2km radius might speak 4-5 different languages fluently. 

For lenders, this linguistic diversity isn't just a cultural nuance—it's a compliance challenge.

How do you provide a vernacular KFS to the borrower - when you don’t have instant fluency data of the borrower walking into your branch?

Here are 4 operational steps you need to take to comply with this requirement

1. Capture Language Preferences Early:

During the borrower’s first interaction, capture their preferred language—whether digitally or in-person. This ensures the rest of the process is tailored to their linguistic needs.‍

2. Multi-Language KFS Kit Preparation:

Prepare separate KFS documents for each likely encountered language - and map these to specific document workflows.

Then, build an interface for the borrower to select their preferred language when viewing KFS - just like in ATMs. 

When a borrower selects their preferred language, the system should automatically pull the correct KFS version, pre-fill it, and display it for acknowledgment.

‍3. Digital Interface Customization:

Ensure the entire digital KFS interface, including buttons, consent forms, and communications, is displayed in the borrower’s selected language. This step is vital for full compliance and is increasingly important with the upcoming Digital Personal Data Protection (DPDP) Act requirements.

This means that - when the borrower selects their language - the interface should be able to switch to that language.‍

4. Ensure vernacularization of communication channels

Extend language preferences to all communications—whether via WhatsApp, SMS, or email. This consistency reinforces your commitment to transparency and improves borrower trust - and ensures full compliance in spirit with the vernacular requirement under the new RBI KFS Rules.

Can Leegality help lenders build and run vernacular KFS flows?

Yes we can. 

With Leegality’s Automated Workflow system, you can do a one-time configuration of different KFS documents in different languages - and code that configuration (using our API) to specific buttons in your field officer app or digital customer interface. 

Here’s an illustrative screenshot of the flow:

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