Microfinance

Microfinance is a financial services like small loans, savings, insurance, and money transfers—offered to individuals or small businesses who lack access to traditional banking. It’s most commonly available for low-income populations, especially in developing countries.

• Microloans: Small amounts of capital (often under Rs.10,000) lent to businessmen or individuals and shops.
• Target Group: Poor communities, especially women in rural areas.
• Purpose: To start or expand small businesses, improve living standards, or manage emergencies.
• Low or No Collateral: Loans are often unsecured or rely on group lending models for trust.

1. Microcredit – Small loans to individuals or groups.
2. Microsavings – Allowing users to deposit small amounts securely.
3. Microinsurance – Affordable insurance for health, crops, or life.
4. Remittance Services – Low-cost ways to send and receive money.

Often delivered by microfinance institutions (MFIs), NGOs, or cooperatives. Uses group lending or “joint liability” models where members guarantee each other’s loans. Promotes financial inclusion, especially in areas with little formal banking. Empowers people to become self-sufficient. Can reduce poverty and improve social mobility. Encourages entrepreneurship and financial literacy. Microfinance Company in India

• BSS Microfinance Limited.
• Annapurna Finance Limited.
• Arohan Financial Services Limited.
• Asmitha Microfin Ltd.
• Muthoot Microfin Limited.
• Spandana Sphoorty Financial Ltd.
• Asirvad Micro Finance Limited.
• Bandhan Financial Services Private Limited.