{"id":99247,"date":"2026-10-09T10:44:02","date_gmt":"2026-10-09T05:14:02","guid":{"rendered":"https:\/\/legalwindow.in\/?page_id=99247"},"modified":"2026-10-09T10:44:02","modified_gmt":"2026-10-09T05:14:02","slug":"micro-finance-company-registration","status":"publish","type":"page","link":"https:\/\/www.legalwindow.in\/blog\/micro-finance-company-registration\/","title":{"rendered":"Micro-Finance Company"},"content":{"rendered":"
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Micro Finance Company Registration<\/h1>\n

Get Your Micro Finance Company Registration from Legal Window\t\t<\/p><\/div>\n<\/p><\/div>\n

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<\/i>Ideal for loans<\/p>\n

<\/i>For doing finance business<\/p>\n

<\/i>Simple & Secure Online Process<\/p>\n

<\/i>Dedicated Professional<\/p>\n

<\/i>Get Registration in 10-15 Days<\/p>\n

<\/i>Get Post Incorporation Assistance<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

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Introduction of Micro-Finance Company<\/strong><\/h2>\n<\/p><\/div>\n<\/p><\/div>\n

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Micro finance Company refers to an array of financial services to low income group by providing loans, savings and insurance. Such funds are made available to poor entrepreneurs and small business owners who do not have any collateral and have no access to banking facilities. The people in rural areas need credit which is cheap and does not increase the burden in their input cost which is important so that these sectors grow and develop and raise the Indian economy.<\/p>\n

Micro-finance companies can provide loans up to INR 50,000 in the rural area to various households, small businessmen and up to INR 1,25,000 to small entrepreneurs, enterprises and people in the urban areas for residential dwelling. Micro-finance Institutions generally provide loans without any collateral security to the small businessman, farmers, agriculturists, etc.. Such institutions are helping in rural and agricultural development and employment generation and boosting up the Indian Economy.<\/p>\n

Microfinance can be registered in 2 ways; one as a non-profit organization which is registered as Section-8 Company<\/a> which doesn\u2019t require any RBI approval and the other as Non-Banking Financial Company<\/a> \u2013 Micro Finance Institution (NBFC-MFI) which can be formed by taking approval from the RBI.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

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Legal Window has team of experts providing you the best assistance, timely delivery and guaranteeing the highest customer satisfaction with respect to Company formation process. You may get in touch with our team on 072407-51000<\/strong> or email admin@legalwindow.in<\/strong> for Micro finance company registration and Compliance services.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

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Advantages of Micro Finance Company<\/strong><\/h2>\n<\/p><\/div>\n<\/p><\/div>\n

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Generation of
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The Microfinance companies offer loans to small entrepreneurs in rural areas which help them to start their own business which in turn will help in generation of employment in the country.<\/p>\n

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Collateral free
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Microfinance companies are eligible to provide borrowings to lower income groups of people without any collateral or margin money. It is beneficial for the people who cannot access the banks for loans.<\/p>\n<\/p><\/div>\n

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Strengthening of Financial Condition<\/h4>\n<\/p><\/div>\n

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People in rural areas are dependent on daily wages; it is not possible for them to have employment during the whole year which creates hassles in their daily life. Such loans can strengthen the financial condition for a limited period of time.<\/p>\n<\/p><\/div>\n

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Encourages entrepreneurship<\/h4>\n<\/p><\/div>\n

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Providing loans to low income groups without any collateral and margin money gives help to the entrepreneurs who want to establish any small business or shops nearby so that they can have recurring income.<\/p>\n<\/p><\/div>\n

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Types of Micro-Finance Company<\/strong><\/h2>\n<\/p><\/div>\n<\/p><\/div>\n

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NBFC-MFI<\/strong><\/h3>\n

Non-Banking Financial Company \u2013 Micro Finance Institution (NBFC-MFI)<\/strong> NBFC-MFI is a non-deposit taking NBFC which can be setup with minimum net owned funds of Rs. 5 crore and having not less than 85% of its assets in the nature of qualifying assets. The conditions and limitations of the loans are as follows:<\/p>\n