Microfinance Company

A Microfinance Company is a specialized financial institution that offers small-scale financial services—such as loans, savings, and insurance—to low-income individuals or groups, particularly in rural and semi-urban areas. It plays a critical role in financial inclusion by providing credit access to those who are often excluded from traditional banking systems.

10000+

Happy Clients

3500+

Expert Advisors

50+

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 ₹5 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)

What You’ll Get

Certificate of Incorporation (Section 8 or Public Ltd.)
Company PAN & TAN
DIN & DSC of directors
MoA & AoA tailored for microfinance operations
Advisory on micro-lending policies and compliance
Support for RBI license application (if applicable)

Frequently Asked Questions

Have a look at the answers to the most asked questions

Can a Microfinance Company lend without RBI approval?

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.

What is the difference between NBFC-MFI and Section 8 Microfinance Company?