Micro Finance Company Registration
Micro Finance Company Registration is one of the most preferred business registration options for organizations engaged in providing small loans and financial services to low-income individuals, self-help groups (SHGs), rural communities, and small businesses. Registered under the Companies Act, 2013 and regulated by the applicable laws and guidelines, a Micro Finance Company offers a separate legal identity , limited liability protection , and enhanced credibility while promoting financial inclusion and economic development.
At IndianSalahkar, we provide end-to-end Micro Finance Company Registration services across India. Our experienced professionals assist you throughout the registration process—from company incorporation, Digital Signature Certificate (DSC), Director Identification Number (DIN), documentation, regulatory approvals, and compliance to post-registration support. We ensure a smooth, transparent, and hassle-free registration experience.
Who Needs Micro Finance Company Registration?
Micro Finance Company Registration is ideal for:
- Micro Finance Institutions (MFIs)
- Self-Help Group (SHG) Promoters
- Rural Finance Organizations
- Women Empowerment Organizations
- Financial Service Providers
- Social Enterprises
- NGOs Expanding Financial Services
- Entrepreneurs Entering the Micro Finance Sector
- Small Business Lending Companies
- Community Development Organizations
Time Required
The registration process is generally completed within 30 to 90 working days, depending on:
Build Your Business with Confidence
Register your Micro Finance Company with IndianSalahkar and establish your business with a legally recognized financial services organization. Our experts ensure a seamless registration process while helping you meet all legal and regulatory requirements. From company incorporation to regulatory approvals and post-registration compliance, we provide comprehensive support so you can focus on expanding financial services and empowering communities with confidence.
How we get it done
- Choose a servicePick what you need or ask us to suggest the right structure.
- Share your detailsFill the enquiry form or message us on WhatsApp.
- Expert call-backOur executive calls you to confirm scope and fees.
- Send documentsShare the checklist documents online — no office visit needed.
- Get it doneWe file, follow up and deliver your certificate.
Watch: Micro Finance Company Registration explained
Frequently asked questions
Who can borrow loan from MFI (Microfinance Institutions) and what are the prescribed limits ?
A borrower whose total annual income does not exceed Rs. 100,000 in rural area or Rs. 1,60,000 in urban and semi-urban and loan amount cannot be more than Rs. 50,000/- in the first cycle and in subsequent cycle Rs. 1,00,000/-. Under this, loan to be extended without collateral.
What will be the tenure of the loan and what will be the loan repayment method ?
Minimum loan tenure should not be less than 24 months. If the loan amount is more than Rs.15000 then the repayment can be made by the borrower without any penalty. MFI has to give a loan to eligible borrowers without any collateral or margin money. At least 70% of total loan amount has to be offered to borrowers by MFI for Income generation. Under this, it will be a choice of borrowers to repay the loan amount weekly or fortnight or in monthly installments.
What are the restrictions regarding interest rate and loan processing charges of MFI ?
Microfinance Companies are not eligible to charge a higher rate of interest from the prescribed rate of interest and maximum variation cannot exceed 4% while if we talk about loan processing charges then it cannot exceed 1% of the gross loan amount. MFI can levy loan insurance charges separately.
Can MFIs give loans for the personal use of borrowers?
Yes, the loan can be given for the personal purpose of the borrowers by MFI, the however aggregate amount cannot exceed 30% of the total loan.
Is it mandatory for MFI to become a member of CIBIL?
It is mandatory for MFI to apply for CIBIL membership.
What will the total cost of Microfinance Company Registration in India ?
The total cost will be around Rs. 8 lacs out of which Rs. 5 lacs will be the professional fees and rest will be the government fees. Professional fees are quite high, because it is a very complex and time-consuming process.
Start your Micro Finance Company Registration today
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