Address : Casaheb,
- B-4 Spaze It Park, Sohna Road, Gurgaon, Haryana, 122018
- Phone +91-9717076556
- anup@casaheb.in
Microfinance Company Registration in India
- Regulatory Compliance:
- Operational Risks:
- Social Responsibility:
- Interest Rate Regulations:
- Capital Adequacy:
Features of Microfinance Companies
1
Target Audience:
Microfinance companies primarily focus on economically
disadvantaged individuals, especially those in rural and
semi-urban areas who lack access to mainstream financial
services.
2
Loan Products:
They provide small-ticket loans, often without requiring
collateral, to support income-generating activities,
entrepreneurship, and self-employment opportunities.
3
Regulatory Framework:
Microfinance companies in India operate under the
regulatory framework of the Reserve Bank of India (RBI)
and must comply with specific guidelines and norms.
Understanding Microfinance Company Registration in India
Microfinance companies are integral to India’s financial
ecosystem by offering financial services to underserved and
low-income communities. These institutions provide small
loans, savings accounts, and other financial products to
individuals without access to traditional banking services,
promoting financial inclusion and economic development.
Key Features of Microfinance Companies
- Target Audience: Microfinance companies primarily focus on economically disadvantaged individuals, especially those in rural and semi-urban areas who lack access to mainstream financial services.
- Loan Products: They provide small-ticket loans, often without requiring collateral, to support income-generating activities, entrepreneurship, and self-employment opportunities.
- Regulatory Framework: Microfinance companies in India operate under the regulatory framework of the Reserve Bank of India (RBI) and must comply with specific guidelines and norms.
Registration Process for an NBFC-MFI
Incorporation:
The company must be registered under the Companies Act,
2013, with a minimum net owned fund of ₹5 crore (₹2 crore
for North Eastern states).
Application to RBI:
Submit an online application via the RBI's COSMOS portal.
The application must also be physically submitted with the
necessary documents to the respective regional RBI office.
RBI Approval:
The RBI will review the application, conduct due diligence,
and grant a Certificate of Registration (CoR) once all
conditions are satisfied, allowing the company to commence
its microfinance operations.
Regulatory Compliance:
Strict adherence to RBI regulations is mandatory.
Non-compliance can lead to penalties or even the
cancellation of the company’s license.
Operational Risks:
Managing credit risk, particularly in unsecured lending,
requires sound risk assessment and management practices.
Social Responsibility:
Striking a balance between profitability and the social
mission of supporting low-income populations necessitates
ethical business practices.
Troll Free Number :
+91-9717076556
Opening Hours :