Microfinance means Micro credit may be registered under section 8 of Companies Act. 2013. Then you will need to register As personal limited or Limited business as MFI (Micro finance organization if you wish to register as MFI )
In practical 99% micro finance institution / bank is pronounced as Micro credit institution / bank and a lot of of them registered as Non revenue company (NPO) however actual Finance enrollment should be referred to the guidelines of License from RBI under the RBI Act of Section 45–1A. According to guidelines, the minimum paid up capital with fixed deposit is 5 crores where as in North east its only Rs. 2 crores.
What is a NBFC-MFI?
Micro Finance Institution (MFI) is a using that is non-deposit. Non Banking Financial Company (NBFC) executes banking at very tiny level as a bank does.
MFI stands for Micro Finance Institutions are providing lending that is similar as NBFC (Non Banking Financial Company) to the poor and weak chapters of the society who do don’t you have regular banking facilities. MFI provides loan that is tiny Rs. 10,000 to 20,000 to begin a business.
India is world No.2 fastest growing economy by having a population that is large. Government banks and sector that is private can perhaps not open their branch in every town. Though, Indian banks have increased their presence but still have restricted reach in remote areas. Microfinance Institutions (MFI) mainly working in villages / remote area to empower farmers and company that is little villages.
NBFC is to be registered NBFC-MFI the minimum capital that is paid-up be not less than Rs. 5 crores. The minimum paid capital requirement is Rs. 2 Crore if an NBFC-MFI registered in North-east region of the Asia. NBFC-MFI has to keep up 85% as Qualifying assets all of the time.
Microfinance Institutions in India:
Here are some of the examples of best Microfinance institutions / companies / banks in India. Check it out.
- SKS Microfinance Ltd (SKSMPL)
- Spandana Sphoorty Financial Ltd (SSFL)
- Share Microfin Limited (SML)
- Asmitha Microfin Ltd (AML)
- Shri Kshetra Dharmasthala Rural Development Project (SKDRDP)
- Bhartiya Samruddhi Finance Limited (BSFL)
- Cashpor Micro Credit (CMC)
- Grama Vidiyal Micro Finance Pvt Ltd (GVMFL)
- Grameen Financial Services Pvt Ltd (GFSPL)