Overview
Micro finance plays a vital role in India’s financial inclusion framework by providing small loans and basic financial services to low income individuals, self help groups, and micro entrepreneurs who are not served by traditional banks. Micro Finance Institutions help bridge the credit gap by offering accessible funding for income generation, education, healthcare, and livelihood support, especially in rural and semi urban areas.
In India, micro finance activities can be carried out through different legal structures such as NBFC Micro Finance Institution, Section 8 Company, Trust, Society, or Cooperative Society. The choice of structure depends on the scale of operations, funding plans, regulatory exposure, and long term business objectives. Among these, NBFC MFI is the most regulated and widely accepted model for large scale micro lending.
Registration and compliance are critical in the micro finance sector. NBFC MFIs are regulated by the Reserve Bank of India and must comply with RBI Master Directions, capital adequacy norms, loan limits, interest rate rules, and fair practices code. NGO based MFIs are governed by state laws but still need to follow lending discipline, transparency, and reporting standards to maintain credibility and avoid regulatory issues.
BizGlobal Professional Services assists entrepreneurs, NGOs, and companies in selecting the right micro finance structure, completing registrations, preparing RBI compliant documentation, and setting up operational compliance. From initial consultation to post registration support, BizGlobal ensures that your micro finance venture is legally sound, compliant, and ready to scale sustainably across India.
