What is known as Nidhi Company?

KEY FEATURES OF MICROFINANCE COMPANIES

Microfinance Company Setup Guide by NYAY SARTHI INDIA FILINGS

Key Requirements:
✔ Minimum capital as per RBI regulations
✔ Incorporation under Companies Act (2013/1956)
✔ Mandatory operating licenses

Operational Focus:

  • Providing financial access to underserved communities

  • Small-ticket lending solutions

NYAY SARTHI INDIA FILINGS ensures compliant microfinance company registration and licensing.

MICROFINANCE INSTITUTIONS AS NBFC

Understanding Microfinance Institutions (MFIs) with NYAY SARTHI INDIA FILINGS

MFIs are specialized NBFCs that:
✔ Operate without accepting public deposits
✔ Function outside Section 8 company registration
✔ Provide banking-like services at smaller scales

Unlike traditional NBFCs, MFIs focus on localized financial inclusion through micro-lending solutions.

NYAY SARTHI INDIA FILINGS offers expert guidance on MFI registration and compliance.

INTEREST RATES ON LOANS BY MICRO FINANCE COMPANIES

Microfinance Fee Structure Explained by NYAY SARTHI INDIA FILINGS

1. Processing Fees
• Maximum 1% of loan amount

2. Interest Rates
• Capped at 26% APR

3. Insurance Premiums
• Actual cost only (group/health/life)
• No hidden charges (RBI compliant)

NYAY SARTHI INDIA FILINGS ensures full compliance with RBI microfinance regulations.

COMPULSORY COMPLIANCES FOR MICRO FINANCE COMPANY

Essential Compliance for Microfinance Companies
By NYAY SARTHI INDIA FILINGS

1. Companies Act Requirements

  • Full compliance for Section 8 companies

  • Standard corporate governance obligations

2. RBI Regulations

  • Mandatory adherence to RBI guidelines

  • Applicable even without formal RBI registration

3. Additional Legal Frameworks

  • Strict PMLA (2002) compliance

  • Anti-money laundering protocols

NYAY SARTHI INDIA FILINGS ensures complete regulatory adherence for your MFI operations.