"There are many attractive features of NBFC loans that work out better for the customer in the long run. 1. Check the NBFC’s pre-closure charges, penalties for default, charges levied on bounced cheques, etc. These are normally higher than those of banks. 2. Verify that the NBFC is registered with the RBI. No unregistered NBFC can conduct business. 3. Approach the right NBFC based on your requirement. NBFCs are broadly categorised into Asset Finance, Investment, Loan, Infrastructure Finance and Systemically Important Core Investment."