RBI has deregulated interest rates to be charged to borrowers by financial institutions (other than NBFC- Micro Finance). The rate of interest to be charged by the Non Banking Finance Company is governed by the terms and conditions of the loan agreement between the borrower and the NBFCs. However, the NBFCs have to be transparent about the procedures for deciding the rate of interest to different categories of borrowers and must disclose it to the borrower in the application form and communicate through the sanction letter, etc.