Microfinance one of the world most powerful new solutions to
poverty and this company is a kind of NBFC that cannot have acceptance to get
deposits. A Microfinance company is usually called Micro Credit Organization
which deals in common loan and it less than Rs. 50000 to different small
companies, households that have no access to banking channels or not eligible
to get loans.
A microfinance company provides financial services such as
loans, savings, and insurance to needy people of the society and small business
entrepreneur who will not be able to qualify for a standard bank loan. Small
businesses and house women don’t get loans from the banks due to lack of proper
facilities and documentation, here it should be handled the problem
Microfinanace Company Registration Online in India.
Microfinance Company
Registration Procedure :-
- Company Registration - The first step in MFI registration is to incorporate a company either as Private Limited Company or Public Limited Company according to Companies Act, 2013.
- Raise Capital - The next step is to raise authorized and paid up share capital up to Rs. 5 Crore or Rs. 2 Crore as the case may be. It should be raised in the form of equity Share Capital and not Preference Share Capital.
- Opening Bank Account - After registration of the company, the amount obtained shall be deposited in a bank account in the form of Fixed Deposit. After this, a certificate of no lien shall be acquired from the bank.
- Application for Microfinance Company Registration with RBI
- File Online Application
- Submission of Hard Copy
- Other Necessary Documents for MFI Registration
The most important of these services is lending like
commercial banks, MFIs are confronted with asymmetric information with respect
to the repayment capacity and/or repayment willingness of their potential
borrowers. screening and monitoring practices by collecting hard information,
such as formal records on assets and liabilities, income statements, salary
specifications. In addition, they usually demand valuable collateral. Moreover,
in India with a well-developed law and property right system, they may recover
the loan by going to court once a loan is not repaid.
The main goal of Microfinance Company is to give low income people
an opportunity to become self-sufficient by providing a means of saving money,
borrowing money and insurance. Micro finance company provides the
representatives of the poor level of the population who are not enormously poor
with credit and other convenient services.