{"id":1543,"date":"2021-01-21T10:20:58","date_gmt":"2021-01-21T10:20:58","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=1543"},"modified":"2021-01-21T10:21:00","modified_gmt":"2021-01-21T10:21:00","slug":"importance-of-micro-finance-company-registration","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/importance-of-micro-finance-company-registration\/","title":{"rendered":"Importance of Micro Finance Company Registration in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Micro Finance Companies are the financial institutions that provide finances to the people who have low income and the financial requirement is less as compared to the other sectors of the society. Such people in requirement of the finance do not have access to traditional financial institutions such as banks and other financial institutions. There are two types of micro finance companies in India that is Non Banking Financial Companies (NBFC) and Section 8 Company. The NBFC is required to be registered with the RBI and the Section 8 Company is a non- profit organisation and does not need RBI approval. This article will talk about the importance of Micro Finance Company Registration in India. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3aa405eb3c9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3aa405eb3c9\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/importance-of-micro-finance-company-registration\/#Objective_Need_for_Micro_Finance_Company\" title=\"Objective\/ Need for Micro\nFinance Company \">Objective\/ Need for Micro\nFinance Company <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/importance-of-micro-finance-company-registration\/#How_is_Micro_Finance_Company_Registration_done_in_India\" title=\"How is Micro Finance Company\nRegistration done in India? \">How is Micro Finance Company\nRegistration done in India? <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/importance-of-micro-finance-company-registration\/#Micro_Finance_Company_Registration_as_NBFC_in_India\" title=\"Micro Finance Company\nRegistration as NBFC in India \">Micro Finance Company\nRegistration as NBFC in India <\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/importance-of-micro-finance-company-registration\/#Register_a_Company\" title=\"Register a Company \">Register a Company <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/importance-of-micro-finance-company-registration\/#Raise_Capital\" title=\"Raise Capital \">Raise Capital <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/importance-of-micro-finance-company-registration\/#Deposit_the_Capital\" title=\"Deposit the Capital \">Deposit the Capital <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/importance-of-micro-finance-company-registration\/#Apply_for_License\" title=\"Apply for License \">Apply for License <\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/importance-of-micro-finance-company-registration\/#Documents_required_for_the_Micro_Finance_Company_Registration_as_NBFC\" title=\"Documents required for the\nMicro Finance Company Registration as NBFC\">Documents required for the\nMicro Finance Company Registration as NBFC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/importance-of-micro-finance-company-registration\/#Micro_Finance_Company_Registration_as_Section_8_Company\" title=\"Micro Finance Company\nRegistration as Section 8 Company \">Micro Finance Company\nRegistration as Section 8 Company <\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/importance-of-micro-finance-company-registration\/#Apply_for_DSC_and_DIN\" title=\"Apply for DSC and DIN \">Apply for DSC and DIN <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/blog\/importance-of-micro-finance-company-registration\/#Apply_for_name_approval\" title=\"Apply for name approval \">Apply for name approval <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/blog\/importance-of-micro-finance-company-registration\/#File_MOA_and_AOA\" title=\"File MOA and AOA\">File MOA and AOA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/blog\/importance-of-micro-finance-company-registration\/#File_all_relevant_documents\" title=\"File all relevant documents\">File all relevant documents<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/swaritadvisors.com\/blog\/importance-of-micro-finance-company-registration\/#Documents_required_for_the_Micro_Finance_Company_Registration_as_Section_8_Company\" title=\"Documents required for the\nMicro Finance Company Registration as Section 8 Company \">Documents required for the\nMicro Finance Company Registration as Section 8 Company <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/swaritadvisors.com\/blog\/importance-of-micro-finance-company-registration\/#Difference_between_Micro_Finance_Company_as_NBFC_and_Section_8_Company\" title=\"Difference between Micro Finance Company as NBFC and Section 8 Company\">Difference between Micro Finance Company as NBFC and Section 8 Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/swaritadvisors.com\/blog\/importance-of-micro-finance-company-registration\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Objective_Need_for_Micro_Finance_Company\"><\/span>Objective\/ Need for Micro\nFinance Company <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The objective or\nneed for Micro Finance Company in India is for the following purposes: &#8211; <\/p>\n\n\n\n<ul><li>It helps in starting up by supporting the small businesses. <\/li><li>It provides financial assistance to firms or companies that cannot place any security or collateral. <\/li><li>It helps in providing a nominal amount as well, which are generally funded as hand loans to the people. <\/li><li>It encourages women to entrepreneurship. <\/li><li>It brings discipline in borrowing by formalizing the process of lending to low-income groups. This helps to prevent over-borrowing and reduces complications arising from high future debts. <\/li><li>Gives opportunity to the low-income groups in becoming self-sufficient. <\/li><li>Offering banking services at small amounts. <\/li><li>Provides access to quality health care. <\/li><li>Creates opportunities for self-employment. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_is_Micro_Finance_Company_Registration_done_in_India\"><\/span>How is Micro Finance Company\nRegistration done in India? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Generally, only Non Banking Financial Companies are allowed to conduct financial business as authorized by the Reserve Bank of India. However, there are certain exceptions as provided by RBI for some businesses to perform financial activities to a specific limit. A <strong><a href=\"https:\/\/swaritadvisors.com\/microfinance-company-registration\" class=\"text-primary\">Micro Finance Company Registration<\/a><\/strong> can be done in 2 ways in India, such as: &#8211; <\/p>\n\n\n\n<ol><li><strong><em>Non Banking Financial Companies (NBFC) registered\nwith RBI. <\/em><\/strong><\/li><li><strong><em>Section 8 Companies under Companies Act,\n2013. <\/em><\/strong><\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Micro_Finance_Company_Registration_as_NBFC_in_India\"><\/span>Micro Finance Company\nRegistration as NBFC in India <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Micro Finance Company Registration as NBFC in India is done in the following manner:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/3931-infographic-of-swarit-1024x635.png\" alt=\"Micro Finance Registration as NBFC\" class=\"wp-image-1545\" width=\"644\" height=\"399\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/3931-infographic-of-swarit-1024x635.png 1024w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/3931-infographic-of-swarit-300x186.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/3931-infographic-of-swarit-768x476.png 768w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/3931-infographic-of-swarit.png 1290w\" sizes=\"(max-width: 644px) 100vw, 644px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Register_a_Company\"><\/span>Register a Company <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>To register as a\nmicro finance NBFC, the first step is to form a public or private company. At\nleast 2 members and a capital of Rs 1 Lakh is required to form a private\ncompany and at least 7 members are required to form a public company. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Raise_Capital\"><\/span>Raise Capital <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The next step is to raise the required minimum net owned funds of Rs 5 crore and for the northeastern region, the requirement is of 2 crores. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Deposit_the_Capital\"><\/span>Deposit the Capital <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The next step is\nto deposit the capital in the bank and obtain \u201cNo lien\u201d certificate for the same.\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Apply_for_License\"><\/span>Apply for License <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Further, an online application is required to be filled by the <strong><a href=\"https:\/\/swaritadvisors.com\/nbfc-registration\" class=\"text-primary\">NBFC<\/a><\/strong> for the license and submit it along with the certified documents. It is also mandatory to submit the hard copy of the application and the license at the regional office of the Reserve Bank of India. Finally, wait and coordinate with the RBI for further instructions. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required_for_the_Micro_Finance_Company_Registration_as_NBFC\"><\/span>Documents required for the\nMicro Finance Company Registration as NBFC<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following\ndocuments are required to be submitted by the NBFC for the registration: &#8211; <\/p>\n\n\n\n<ul><li>Memorandum of Association (MOA) and Articles of\nAssociation (AOA). <\/li><li>Copy of Board Resolution. <\/li><li>Company\u2019s Incorporation Certificate. <\/li><li>Copy of Auditors report of receipt or fixed\ndeposit receipt. <\/li><li>Banker\u2019s report about the company. <\/li><li>Banker certificate of No lien stating the net\nowned worth. <\/li><li>Directors\u2019 Net worth certificate. <\/li><li>Directors recent credit report. <\/li><li>Director\u2019s KYC and income proof. <\/li><li>Education and qualification proof of the\ndirectors. <\/li><li>Organization\u2019s structural plan. <\/li><li>Proof of working experience in the financial\nsector. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Micro_Finance_Company_Registration_as_Section_8_Company\"><\/span>Micro Finance Company\nRegistration as Section 8 Company <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Micro Finance Company Registration as Section 8 Company in India is done in the following manner:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/18046-swarit.png\" alt=\"Micro Finance Registration as Section 8\" class=\"wp-image-1546\" width=\"672\" height=\"336\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/18046-swarit.png 700w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/18046-swarit-300x150.png 300w\" sizes=\"(max-width: 672px) 100vw, 672px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Apply_for_DSC_and_DIN\"><\/span>Apply for DSC and DIN <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The first step\nto register a company is to apply for the digital signature certificate (DSC)\nand director identification number (DIN). It is essential to obtain DSC for\nauthorizing the e- form. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Apply_for_name_approval\"><\/span>Apply for name approval <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The next step in the Importance of Micro Finance Company Registration as Section 8 Company is to apply for name approval in Form INC- 1. The name must suggest that it is registered as a section 8 company. So the words such as foundation, Sanstha or micro credit must be used. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"File_MOA_and_AOA\"><\/span>File MOA and AOA<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Once the company\nhas applied for name approval, the next step is to draft the Memorandum of\nAssociation (MOA) and Articles of Association (AOA) and file it along with the\nrequired documents. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"File_all_relevant_documents\"><\/span>File all relevant documents<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The final step\nis to file all the necessary documents along with the incorporation certificate\nand Form INC- 12 to obtain the license. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required_for_the_Micro_Finance_Company_Registration_as_Section_8_Company\"><\/span>Documents required for the\nMicro Finance Company Registration as Section 8 Company <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Identity proof documents.<\/li><li><strong>PAN Card<sup><a href=\"https:\/\/www.incometaxindia.gov.in\/Pages\/tax-services\/apply-for-pan.aspx\" class=\"text-primary\"><strong><em>[1]<\/em><\/strong><\/a><\/sup><\/strong> of all the promoters and directors.<\/li><li>Address proof documents.<\/li><li>Photograph of all the promoters and directors. <\/li><li>If the office is rented then the No Objection Certificate of the owner. <\/li><li>If the office is self-owned, then the proof of ownership of the registered office, that is an electricity bill or water bill. <\/li><li>Applicable stamp duty as mandated by the state. <\/li><li>Any other documents as required. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Difference_between_Micro_Finance_Company_as_NBFC_and_Section_8_Company\"><\/span>Difference between Micro Finance Company as NBFC and Section 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<table>\n<tbody>\n<tr>\n<td width=\"205\">\n<p><strong>Basis of Difference<\/strong><\/p>\n<\/td>\n<td width=\"205\">\n<p><strong>NBFC<\/strong><\/p>\n<\/td>\n<td width=\"205\">\n<p><strong>Section 8 Company<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"205\">\n<p>RBI approval<\/p>\n<\/td>\n<td width=\"205\">\n<p>NBFC requires RBI approval.<\/p>\n<\/td>\n<td width=\"205\">\n<p>Section 8 Company does not require RBI approval.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"205\">\n<p>Minimum Capital<\/p>\n<\/td>\n<td width=\"205\">\n<p>Requires minimum net owner funds of Rs 5 crore and for the north eastern region the requirement is of 2 crore.<\/p>\n<\/td>\n<td width=\"205\">\n<p>No minimum capital requirement.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"205\">\n<p>Director Experience<\/p>\n<\/td>\n<td width=\"205\">\n<p>One director must have the experience in financial services of more than 10 years.<\/p>\n<\/td>\n<td width=\"205\">\n<p>No prior experience required.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"205\">\n<p>Compliance<\/p>\n<\/td>\n<td width=\"205\">\n<p>Heavy Compliance.<\/p>\n<\/td>\n<td width=\"205\">\n<p>Less compliance.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"205\">\n<p>Loan Limit<\/p>\n<\/td>\n<td width=\"205\">\n<p>Maximum of 10% of total assets.<\/p>\n<\/td>\n<td width=\"205\">\n<p>Loan up to Rs. 1. 25 lakh to dwelling residence and unsecured loans of Rs 50,000 to small businesses.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"205\">\n<p>Cost of Registration<\/p>\n<\/td>\n<td width=\"205\">\n<p>High Cost, Rs 4 to 5 lakh.<\/p>\n<\/td>\n<td width=\"205\">\n<p>Low cost, Rs. 25,000.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"205\">\n<p>Loan<\/p>\n<\/td>\n<td width=\"205\">\n<p>As defined by RBI.<\/p>\n<\/td>\n<td width=\"205\">\n<p>Gives unsecured loan to small businesses, households etc.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"205\">\n<p>Complexity of micro finance company registration<\/p>\n<\/td>\n<td width=\"205\">\n<p>All processes involved in forming a company have to be performed.<\/p>\n<\/td>\n<td width=\"205\">\n<p>Simple as compared to NBFC as it is a non- profit organization.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"205\">\n<p>No of Members<\/p>\n<\/td>\n<td width=\"205\">\n<p>Minimum 2 members in case of private limited company and minimum 7 members in case of public limited company.<\/p>\n<\/td>\n<td width=\"205\">\n<p>Minimum 2 members are required.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"205\">\n<p>Interest Rate<\/p>\n<\/td>\n<td width=\"205\">\n<p>As per RBI guidelines.<\/p>\n<\/td>\n<td width=\"205\">\n<p>As per RBI guidelines.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"205\">\n<p>Organization Status<\/p>\n<\/td>\n<td width=\"205\">\n<p>Profit organization.<\/p>\n<\/td>\n<td width=\"205\">\n<p>Non- profit organization.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Micro finance company can provide loans to the people at very inexpensive rates as directed by the Central government and the RBI. It is clear from the above information that Importance of Micro Finance Company Registration as <strong><a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/section-8-company-registration\">Section 8 Company<\/a><\/strong> is relatively easier; however, the lending capacity is also very limited. A company must take into consideration all the information and facts and make a wise decision to whether to start micro finance company as NBFC or a Section company.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/nbfc-compliance-under-fema\/\">A Complete Summary of NBFC Compliance under FEMA<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Micro Finance Companies are the financial institutions that provide finances to the people who have low income and the financial requirement is less as compared to the other sectors of the society. Such people in requirement of the finance do not have access to traditional financial institutions such as banks and other financial institutions. There [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1544,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[59],"tags":[199],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1543"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=1543"}],"version-history":[{"count":3,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1543\/revisions"}],"predecessor-version":[{"id":1549,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1543\/revisions\/1549"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/1544"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}