NBFC Due Diligence
Independent NBFC due diligence: financial, legal, regulatory, compliance, tax, operational and loan-book diligence with clear risk assessment for acquirers, investors and lenders.
NBFC balance sheets hide their risks in the loan book — evergreening, related-party exposures and provisioning gaps rarely show up in headline financials. Surface-level diligence misses them; we don't.
Our NBFC due diligence covers financial, legal, regulatory, compliance, tax, operational and loan-book dimensions in one integrated report with a plain-English risk assessment — built for acquirers, PE investors, lenders and boards.
What's included
Financial & loan-book diligence
- Financial due diligence: earnings quality, capital adequacy and provisioning adequacy
- Loan book due diligence: sample-based file review, DPD analysis, evergreening tests
- ALM and liquidity profile review
- Related-party exposure mapping
Legal, regulatory & compliance diligence
- Legal due diligence: corporate records, contracts, litigation and title to assets
- Regulatory due diligence: CoR validity, RBI correspondence and inspection history
- Compliance due diligence: filing track record and policy adequacy
- Tax due diligence: direct and indirect tax positions and disputes
Operational diligence & risk assessment
- Operational due diligence: systems, collections, underwriting and key-man risks
- Consolidated risk assessment with rated findings and mitigants
- Deal-breaker vs negotiable issue classification for your negotiations
How we work
- Scope & data room. We agree scope, materiality and the data-room checklist.
- Fieldwork. Document review, management discussions and sample file testing.
- Findings workshop. Preliminary findings discussed with you before we finalise.
- Report. Integrated diligence report with rated risks and recommendations.
- Deal support. We support SPA protections and condition-precedents arising from findings.
What you receive
- Integrated due diligence report (financial, legal, regulatory, tax, operational, loan-book)
- Risk register with rated findings and mitigants
- Management Q&A log from fieldwork
- Deal-structuring recommendations
Due Diligence — FAQs
Typically 3–5 weeks depending on book size and data-room quality. Rushed diligence on NBFCs is a false economy.
Risk-based sampling — larger samples in stressed segments, plus 100% review of large and related-party exposures. We agree methodology upfront.
Yes — banks and institutions use our reports for credit decisions on NBFC borrowers and co-lending partners.
Always. Past inspection findings and the quality of responses tell you more about an NBFC than its financials.
We give you rated risks, mitigants and our professional assessment — the decision stays yours, but it will be an informed one.
Need help with due diligence?
Free initial consultation — tell us your situation and we'll scope a fixed-fee engagement.