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1. Technology Utilization

Gain a competitive advantage in technology. The company that utilizes technology to open

up new markets serve customers, increase efficiency and new product and service

development has the better chance of besting competition. Use virtual production to automate

most facets of loan production or partner with processing outsourcers. NBFC with

streamlined processes can maintain lower production costs which, combined with servicing

revenue, will generate greater overall profits on lower retail pricing.

2. Brand Image

Getting both your employees and customers to recognize and buy into your brand is a key

success factor. You must implement and communicate what your brand promises and

delivers to clients based on their challenges, needs and feelings when it comes to take loan,

loans against share, Financing of specialized equipment needs. At the same time, you need to

encourage management to understand the importance of establishing your brand through

identifying and educating your target market as to the importance of buying financial services

from your company rather than from a competitor.

3. Customers Retention

In any industry, a company is successful if it can retain its key customers. A proactive and

aggressive company does not become complacent after getting the big contract; it works tokeep it. Develop new ideas based on the needs of your larger clients to keep them interested

in doing business with your company. If your company cannot retain its top clients from year

to year, staying successful will become increasingly difficult.

4. Product Development

18.Key Success Factors of NBFCs

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Whether you sell a tangible product or a service, if you do not keep up with the changes in

your marketplace as dictated by your customers, you cannot survive. Being first to market

and staying ahead of the competition is always ideal in trying to maintain your market share,

but it is not always achievable. At minimum, you need to make sure you are keeping up with

the demands of your industry and are consistently recognized as a company that stays on top

of product changes.

5. Sales and customer support

Understanding of products offered by the NBFC.

Knowledge of RBI rules and guidelines applicable to NBFC.

Ability to convince to buy from NBFC.

Good communication & motivation skills.

6. Credit appraisal and evaluation

Ability to decide what percentage loan to offer to the customer based on the customers

ability to repay the loan.

Ability to check the standing of guarantors provided by the customer.

7.

Collections and recovery-

Ability to keep track of collections being receivable from customers.

Ability to segregate customers into various categories based on their level of default

and take appropriate actions for collections.

8. Product design-

Ability to track the market and study what auto loan products are being offered by

competitors.

Ability to design loan products addressing needs of customers according to their

profile and the product being purchased.

Ability to build in maximum profitability in designed loan products.

9. Others-

Establish clear goal alignment from executive, business unit or regional, down to

individual branch employees.

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Provide managers with the tools to offer consistent and meaningful feedback making

it possible for employees to meet and exceed performance expectations.

Instil a pay-for-performance culture leading to higher levels of employee engagement

leading to greater employee retention and higher productivity.

Identify and develop key retail banking, financial advisory and any other specific

skills or competencies needed to achieve company objectives.

Ability to manage the credit quality through strong local knowledge, close access to

customers and a strong focus on recovery and collection efforts.

Ability to penetrate into the niche segments and specialisation enables NBFCs to

command high yields that translates into high profitability.