Microfinance is a banking service provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services.
What does a microfinance company do?
Microfinance institutions offer “microloans” to borrowers along with assistance (financing a new business or an expansion plan, paying for urgent family needs,
facilitating mobility to obtain a job, etc.), despite the fact that these borrowers do not offer a solid guarantee of repayment.
Microfinance Company Registration as an NBFC
To form a private company, at least 2 members and a capital of Rs 1 lakh is required. To form a public company, at least 7 members are required. Raise capital: The subsequent step is to raise the required minimum net owned funds of Rs 5 crore.
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