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Managing 300+ Finance Companies

MicroFinance Company

with our Expert Assistance

  • ✅ MicroFinance (Sec-8) Company
  • ✅ CRIF Highmark Credit Score
  • ✅ MicroMuneem Accounting Software
  • ✅ ENach Auto Debit Services by ICICI Bank
  • ✅ Expert support by Adv Mohit Singh
  • ✅ Funding Assistance up to 10 crores
  • ✅ Compliance Assurance

What is MicroFinance Company?

Set Up Your Micro Finance Business with StartupBooster’s Comprehensive Support!

Only 20.77% of the country's population has access to bank loans. Out of this, only 8.63% qualify due to strict eligibility criteria.

Micro Finance Companies in India provide short-term credit facilities to those without banking access.

Types of Micro Finance Companies

Micro-Finance Company Registration

No RBI registration required & no minimum NOF of ₹2 Crores.

Non-Banking Finance Company (NBFC-MFI)

Requires RBI registration & minimum NOF of ₹2-5 Crores.

Seamless Access

Provides financial access to unbanked & underserved individuals.

Eligibility Criteria for Micro Finance Company Registration

  • The company must be registered as a  Private Limited or Public Limited Company under the Companies Act.
  • Minimum  Net Owned Fund (NOF) of ₹5 crore (₹2 crore for North-Eastern states) is required.
  • The company must obtain  RBI registration as an NBFC-MFI (Non-Banking Financial Company – Micro Finance Institution).
  • At least  85% of total loans should be provided to low-income individuals or groups.
  • The  loan amount cannot exceed ₹1.25 lakh for income-generating activities.
  • The company  must not accept public deposits.
  • A valid  registered office address is required.

Documents required

This Is All We Need From You

  • 🔴 PAN Card or Passport (Foreign Nationals & NRIs)
  • 🔴 Copy of Aadhaar Card
  • 🔴 Passport-sized Photograph
  • 🔴 Mobile Number & Email IDs
  • 🔴 2 months latest bank statement/ telephone or mobile bill/ electricity or gas bill
  • 🔴 Latest Electricity Bill/ Mobile Bill for Registered Office

What we offer to accelerate your
MicroFinance Business

We don’t just get your tax return filed within a day but get you maximum refunds in the shortest time.

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CRIF High Mark Credit Score

Guaranteed access to CRIF Highmark Portal to check and update your Client’s Credit Score and more. Increase your Recoveries through Credit Score Management.

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MicroMuneem Accounting Software

Manage Clients, Staff, Interest, Loans, Disbursements, EMIs & more with the best MicroMuneem Accounting Software specifically developed for MicroFinance Companies.

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Funding Assurance Upto Rs.10 Crores

Grow your MicroFinance Business with our Guaranteed Funding assistance from Banks & NBFCs. Avail Funding benefits up to Rs.10 Crores.

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ENach Auto Debit Services By ICICI Bank

Auto collect EMIs from your Clients directly in your Bank Account via Enach Auto debit Services from Various Banks. Automate processes and skyrocket your growth.

Features of MicroFinance (Sec-8) Company

Why most people choose MicroFinance as compared to other Business entities

Separate Legal Entity

Just like any other company, Microfinance Section 8 Company has distinct directors and shareholders with a separate identity, limiting their liabilities.

Loans to Small Business Houses

Provides unsecured loans to small businesses up to Rs. 50,000/- and housing loans up to Rs. 125,000/- to uplift the weaker sections of society.

No Prior RBI Approval

Unlike other Microfinance Companies, Section 8 MicroFinance Company does not require RBI approval for registration.

No Minimum Capital Requirement

RBI has exempted MicroFinance Companies from having a minimum paid-up capital, making it easier to start.

Upliftment of Weaker Sections

Provides short-term credit facilities to weaker sections who lack access to banking services.

Minimum Compliances

Microfinance Section-8 Companies have fewer legal compliance requirements compared to other financial companies.

Steady Source of Income

Ensures a steady income in the form of interest revenue.

Earn Interest Up to 26% P.A

Microfinance Section-8 Companies can earn interest up to 26% per annum on loan advances.

Contact Us

MicroFinance Reg. Process

More Simple Than It Looks!

📌 1. PREPARATIONS OF DIGITAL SIGNATURE (DSC)

We apply for DSCs of all the Directors & members. Digital Signatures are required for signing all the documents while incorporating your Section 8 Micro Finance company.

📌 2. FILING APPLICATION FOR DIRECTOR’S DIN

The next step is the application of Director Identification Number (DIN). It is the unique number allotted by the MCA to each of the directors of the Section 8 Micro Finance Company.

📌 3. CHOOSING UNIQUE NAME

Meanwhile applying for your DSCs, we help you in selecting Unique Name for your dream Section 8 Micro Finance Company. This process completes in a single day.

📌 4. PREPARING FORMS AND DOCUMENTS

After the approval of the Company’s name, we prepare all the e-forms and other documents.

📌 5. FILING E-FORMS WITH MCA

After completing all the formalities and documentation work, we upload e-forms along with the attachments prepared in step-4 on the MCA portal for approval.

📌 6. ALLOTMENT OF COI, PAN & TAN

The department will allot Certificate of Incorporation for your Section 8 Microfinance Company along with company’s PAN & TAN. You can now open a Current Bank Account and start the operations. CONGRATULATIONS...

FAQs

Few Doubts Important To Be Resolved Quickly
1. How much interest Micro Finance Company can charge from its borrowers? +
Micro Finance Companies can charge interest up to 26% per annum as per RBI guidelines.
2. Can a Microfinance Section 8 Company charge Processing Fees from its borrowers? +
Yes, a Microfinance Section 8 Company can charge processing fees, but it should be within the regulatory framework.
3. Can a Microfinance Company charge insurance premium in excess of the actual cost of insurance incurred by it from its borrowers? +
No, a Microfinance Company cannot charge insurance premiums beyond the actual cost incurred.
4. What type of loan a Section 8 Micro Finance Company can give? +
A Section 8 Micro Finance Company provides unsecured loans to small businesses and housing loans to weaker sections of society.
5. Can a Section 8 Micro Finance Company accept deposits from the general public? +
No, Section 8 Micro Finance Companies are not allowed to accept public deposits.
6. Is a Section 8 Micro Finance Company allowed to extend loans against securities such as immovable property, gold, silver, etc.? +
No, Section 8 Micro Finance Companies provide unsecured loans and cannot lend against securities like property or gold.
7. Can a Section 8 Micro Finance Company impose prepayment penalty on early repayment of the loan amount by the borrower? +
No, Section 8 Micro Finance Companies cannot impose prepayment penalties on borrowers.
8. How many members are required to start a Section 8 Micro Finance Company? +
A minimum of two members are required to incorporate a Section 8 Micro Finance Company.
9. Do we need your Physical presence during Section 8 Micro Finance Company Incorporation Process? +
No, the entire incorporation process can be completed online.
10. What is a Digital Signature Certificate (DSC)? +
A Digital Signature Certificate (DSC) is an electronic form of a signature used to sign documents digitally.
11. What are the Articles of Association (AOA) and the Memorandum of Association (MOA)? +
AOA outlines the internal rules of the company, while MOA defines its objectives and scope of operations.
12. What is the minimum capital requirement to start a Section 8 Micro Finance Company? +
There is no minimum capital requirement for incorporating a Section 8 Micro Finance Company.
13. Do Section 8 Micro Finance Companies require any approval from RBI before starting their lending business? +
No, Section 8 Micro Finance Companies do not require RBI approval to start lending operations.
14. Is Section 8 Micro Finance Company required to include the words like - Foundation, forum, association, federation, chamber, confederation, council, electoral trust etc.? +
Yes, a Section 8 Micro Finance Company must include words like Foundation, Association, or similar as per regulatory norms.

WHY CHOOSE US? THE STARTUP BOOSTER

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Personal
Assistant

Once you decide to register, we assign you a personal assistant to ensure smooth processing and answer your queries on time.

Lowest Price in India

We redefine the phrase "First step is always the toughest" and help entrepreneurs start their journey at the lowest cost possible.

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Best Customer Support

We provide 24/7 customer support via call, SMS, email, and WhatsApp, ensuring your queries are resolved at any time.

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Easy Uploads & Downloads

Our CRM system allows you to easily upload and download forms online with 100% transparency in the process.