Financial crunch can affect people at unexpected times. Getting a loan can help you tide over financial problems. However, small businesses and homemakers cannot access loans from banks due to not having a steady income. A microfinance institution or MFI can come to the rescue in such cases.
The Companies Statue of 2013 has provided guidelines to establish microfinance institutions in India. Such companies run as non-banking finance companies in the country. You must complete NBFC registration to provide loans. Such institutions can involve a limited range of financial activities.
When your business has NBFC company registration, you can approve small loans under one lakh Indian rupees to people or small businesses. Small businesses can depend on a microfinance institution to meet their financial requirements. When you get the license with expert assistance, your business can become a successful microfinance institution.