Micro Finance Institution (MFI) Registration in India

A Micro Finance Institution (MFI) provides small-ticket loans to low-income individuals, self-employed professionals, and small businesses that lack access to traditional banking services. Regulated by the Reserve Bank of India (RBI), MFIs play a crucial role in financial inclusion and rural development. If you are looking for Micro Finance Institution Registration in India, Corpzo provides expert assistance in obtaining the necessary approvals and ensuring compliance.

Key Features of Micro Finance Institutions (MFIs)

✔️ Small Loan Disbursement – Provides loans ranging from ₹10,000 to ₹1,00,000 without collateral.

✔️ Financial Inclusion – Supports economically weaker sections and unbanked communities.

✔️ Flexible Repayment – Offers easy installment-based repayment options.

✔️ Regulated by RBI – Must comply with RBI guidelines on interest rates, capital requirements, and governance.

✔️ Social Impact – Empowers small entrepreneurs, women, and self-employed individuals.

Eligibility Criteria for MFI Registration in India

✅ Company Structure – Must be registered as a Non-Banking Financial Company (NBFC-MFI) under RBI regulations.

✅ Minimum Net Owned Funds – ₹5 Crore (₹2 Crore for the North-Eastern region).

✅ Loan Disbursement Norms – At least 85% of total assets should be in microfinance loans.

✅ Interest Rate Cap – Lending rates are capped as per RBI guidelines to protect borrowers.

✅ Risk Management Framework – Adequate policies for credit assessment and debt recovery.

Steps for Micro Finance Institution Registration

1️⃣ Company Incorporation – Register as a Private Limited Company or Public Limited Company.

2️⃣ RBI NBFC-MFI Registration – Submit an application to RBI with financial and operational details.

3️⃣ Compliance & Approval – RBI reviews capital adequacy, governance, and business plans.

4️⃣ Final Certification – Upon approval, RBI grants an NBFC-MFI License.

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