Microfinance companies are financial businesses that specialise in providing small-scale financial services such as loans, credit, and savings. These companies are introduced to facilitate the credit system for small firms because of the complex process they don’t get a loan from banks.
The simplest approach to set up a microfinance company in India is to register as a Section-8 company with the Ministry of Corporate Affairs (MCA). Without levying any additional fees or ensuring security. It has the ability to provide loans at low-interest rates as specified by the RBI and the central government.
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