Microfinance Company
A Microfinance Company is a specialized financial institution that offers small-scale financial servicesâsuch as loans, savings, and insuranceâto low-income individuals or groups, particularly in rural and semi-urban areas.
- Our in-house team handles over 50 types of business licenses.
- We provide end-to-end services across India.
- Ensuring smooth and continuous adherence to all legal.
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Happy Clients
3500+
Expert Advisors
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Branch Offices
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Benefits of a Microfinance Company
Promotes Financial Inclusion: Provides financial access to underserved populations.
Empowers Women & Small Entrepreneurs: Most beneficiaries are women and rural micro-entrepreneurs.
Social Impact & Growth: Drives community development while building a sustainable business model.
Flexible Registration Options: Can be registered either as a Section 8 Company (without RBI approval) or as an NBFC-MFI (with RBI approval).
Limited Liability & Legal Recognition: Operates as a company with a separate legal identity and limited liability.
Ideal For
NGOs or social entrepreneurs seeking to offer microloans or financial literacy programs
Organizations targeting rural or low-income segments
Groups aiming for community development and self-reliance
Investors planning to enter the regulated microfinance sector via the NBFC route
Registration Process
Option 1: Section 8 Company (Without RBI Approval)
Name reservation and DIN/DSC of directors
Filing of Section 8 incorporation forms with MCA
Drafting of Memorandum and Articles focused on micro-lending and financial inclusion
Post-registration legal support and guidance on setting up lending structure
Option 2: NBFC-MFI (With RBI Approval)
Formation of a Public Limited Company
Raising minimum net owned funds of âč5 Crore
Application to RBI for NBFC-MFI license
Fulfillment of compliance, capital adequacy, and operational norms
Documents Required
PAN, Aadhaar, and address proof of all directors
Passport-size photos
Registered office proof (rent agreement, utility bill, NOC)
Proposed business activity details and mission statement
Net worth certificate (for NBFC route)
Bank account and capital proof (for NBFC route)
Frequently Asked Questions
Yes, if registered as a Section 8 Company, it can lend on a non-profit basis without RBI approval. For profit-based lending, NBFC-MFI registration from RBI is required.
NBFC-MFI: Requires RBI approval, operates commercially.
Section 8 Company: Non-profit model, operates without RBI license.
âč5 Crore is the minimum net owned fund (NOF) required, except for North Eastern states where it is âč2 Crore.
RBI regulates NBFC-MFIs. Section 8 Companies are regulated by the Ministry of Corporate Affairs (MCA).
No. Microfinance Companies are not allowed to accept public deposits.
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