Microfinance Companies in India

Microfinance Companies in India

Top Microfinance Companies

Microfinance companies provide small scale financial services especially to economically underprivileged and poor people in rural, semi-urban and urban areas who struggle to get loan from traditional lenders. These companies help poor people by providing small amount of loan their customers so they start their business and earn money. These companies provide small ticket size loan and collateral free loans also. Microfinance companies also provide loan to micro and small industries. Some companies may offer insurance as well..

Bharat Financial Inclusion
Microfinace companies usually provide small loan that begin from Rs. 2000 to Rs. 1,00,000 to help people start  simple businesses. Loan can also be used for business expansion. These companies provide individual as well as group loans. In case of group loans, borrowers are organized into groups and and the group takes the responsibility of repayment of loan of each member of the group.

Microfinace companies serve people like housemaids, labours in construction home constructions, flower sellers etc. Although cost of loan is slightly higher than traditional banks. A microfinance institution can also have equity investors. Microfinance industry come in sunrise sectors and are showing steady growth. Indian microfinance industry is about 10 billion dollar industry.. Microfinance is very effective tool in reducing poverty. There is huge growth in Business Correspondents (BC) model.

Top ten microfinac companies includes Bharat Financial Inclusion Limited previously known as SKS Microfinance Limited, Share microfin Limited, Spandana spoorty Financial Limited, Ashmitha Microfin Limited, Bhartiya Samruddhi Finance Limited, Cashpor Micro Credit.

Some very successful Microfinance companies are given Small Finance Bank license. Some of them have commenced their banking operations like Ujjivan Small Finance Bank, Equitas Small Finance Bank, Utkarsh Small Finance Bank, Suryoday Small Finance Bank and Capital Small Finance Bank. Some other license holders are yet to commence  their operations. These includes AU Financiers, Disha Microfin, ESAF Microfinance and Investments, Janalaxmi Microfinance and RGVN Microfinance.

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