RTF stands for Ready-to-Fly and it means the model you are buying comes complete with everything you need to get started – straight from the box! Includes the RC transmitter (controller) and receiver, a battery, and sometimes a cheap charger for that battery. Some RTF kits include extras like FPV gear, cash kits, and higher quality battery chargers.
BNF stands for Bind-N-Fly. Bind-N-Fly products come with everything you need except for a transmitter. With BNF products you can use the transmitter of your choice and bind it to the receiver included with the model.
PNP stands for Plug-N-Play. Plug-N-Play products come with everything you need except for a transmitter, receiver battery and charger. It does contain servos, motor and ESC.
PNF stands for Plug-N-Fly. Same thing as PNP.
ARF stands for Almost-Ready-to-Fly, this means the model needs some additional “need to complete” items before you can start flying. Common additional items include servo’s, motor, electronics, batteries and even glue. Generally, these are DIY kits that give you all examples of parts to buy.
To sum it all up: (1) RTF kits are for those that are entering the drone hobby, while (2) BNF kits are for RC veterans, who are usually in possession of one or more hobby grade controllers. (3) ARF kit drones appeal to a different market altogether, the section of the market which comprises of DIY enthusiasts and the like.