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Microfinance Company Registration in India

Start your microfinance NBFC under RBI guidelines. Get NBFC-MFI license with minimum Rs 5 Cr net worth. Expert legal assistance for microfinance registration.

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What is Microfinance Company?

A microfinance company provides small loans to low-income individuals who lack access to traditional banking services. These companies must be registered as NBFC-MFI (Non-Banking Financial Company - Micro Finance Institution) with the Reserve Bank of India (RBI).

Microfinance NBFCs play a crucial role in financial inclusion by providing microloans for income generation, business development, and household needs. They are regulated by RBI under the Master Direction - NBFC - MFIs.

At VakilExpert, we provide end-to-end services for NBFC-MFI registration, RBI compliance, annual compliance, and regulatory advisory for microfinance companies across India.

RBI Regulated & Licensed
Minimum Rs 5 Cr Net Worth
High Growth Potential
Social Impact Business

10000+

NBFCs Registered

8+

Years Experience

100%

Online Process

4.9/5

Google Rating

Why Choose Microfinance NBFC?

Top benefits of registering as NBFC-MFI under RBI.

RBI Regulated Framework

Operate under RBI supervision with clear guidelines for lending, interest rates, and operations. Consumer protection guaranteed.

High Growth Potential

India's microfinance market is valued at over $100 billion. Huge untapped potential in rural and semi-urban areas for financial inclusion.

Serve Unbanked Population

Provide financial services to millions of unbanked Indians. Make a social impact while building a profitable business model.

Multiple Funding Options

Access funding from banks, NBFCs, SIDBI, MUDRA, and international agencies like IFC, ADB, and GIZ for microfinance operations.

Legal Lending Framework

Operate legally with clear rights to recover loans through established legal mechanisms. Strong recovery framework under Indian law.

Skill Development Loans

Offer specialized microfinance products including skill development loans, agriculture loans, MSME loans under priority sector lending.

Microfinance Registration Process

4 steps to register your NBFC-MFI with RBI.

01
Eligibility Check

Verify promoter eligibility, net worth requirements, and fit & proper criteria as per RBI guidelines.

02
Company Incorporation

Incorporate the company under Companies Act 2013 with appropriate MOA/AOA clauses for financial services.

03
RBI Application

Submit detailed application to RBI with all required documents including business plan, financial projections, and KYC.

04
Get NBFC-MFI License

Receive Certificate of Registration from RBI as NBFC-MFI and commence microfinance operations.

Documents for Microfinance NBFC

KYC Documents of Promoters/Directors
MOA & AOA of Proposed Company
Audited Financial Statements (3 Years)
Business Plan & Financial Projections
Net Worth Certificate (Min Rs 5 Cr)
Board Resolution for NBFC Application
Fit & Proper Criteria Details of Promoters
Shareholding Pattern
NOC from Appropriate Regulator

Benefits of Microfinance NBFC

RBI Supervision

Operate under RBI's regulated framework with consumer protection and compliance guidelines ensuring stability.

Profit & Social Impact

Earn sustainable returns while creating social impact. Microfinance combines financial viability with inclusive growth.

Diverse Funding Sources

Access capital from banks, SIDBI, NABARD, international agencies, and debt markets for growth and expansion.

Huge Market Size

India's microfinance market has 300M+ potential customers. Low market penetration means enormous growth opportunities.

Priority Sector Lending

Microfinance loans qualify as priority sector lending. Banks can lend to NBFC-MFIs to fulfill their PSL obligations.

Credibility & Trust

RBI registration gives strong credibility to borrowers, investors, and stakeholders in the financial services market.

Frequently Asked Questions

Common questions about microfinance company registration in India.

NBFC-MFI is a Non-Banking Financial Company - Micro Finance Institution registered with RBI with minimum net worth of Rs 5 Cr that provides loans to rural and urban poor for income generation and business development.

Minimum net worth of Rs 5 Crore is required for NBFC-MFI registration. The company must maintain this minimum net worth at all times after registration as per RBI Master Direction.

NBFC-MFI requires minimum net worth of Rs 5 Cr and specifically caters to microfinance. Regular NBFC has minimum net worth of Rs 2 Cr. NBFC-MFI is a specialized category under NBFC regulations.

No, NBFC-MFIs cannot accept demand deposits. They can only accept term deposits of minimum 6 months maturity. Public deposits are not permitted without prior RBI approval.

RBI microfinance license typically takes 6-12 months for approval. The process involves initial application, clarifications, and final approval from RBI's Department of NBFC.

RBI mandates interest rates based on cost of funds plus margin. For loans above Rs 1 lakh, ceiling is 6% above highest large loan rate. Fair Practice Code must be followed.

Fair Practice Code is mandatory for NBFC-MFIs prescribing norms for loan disbursement, recovery, transparency in interest rates, and fair treatment of borrowers. RBI prescribes minimum standards.

Annual compliance includes: audited financials submission, ALM returns, priority sector lending returns, credit monitoring returns, KYC updates, and Board of Directors reports to RBI.

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