NBFC–MFI Setup & RBI Approval by N D Savla & Associates

Microfinance isn’t just another lending business. It operates under a separate regulatory lens, with strict RBI norms around borrower protection, pricing, and governance. One weak application or misaligned structure can stall approval indefinitely.

At N D Savla & Associates, we help promoters register Microfinance Companies the right way. Compliant with RBI regulations, structured for approval, and ready for sustainable operations.

What Is a Microfinance Company?

A Microfinance Company in India is registered as an NBFC–MFI under RBI regulations. These entities provide small-ticket loans to low-income households, with defined limits on borrower income, loan size, and repayment obligations.

Because MFIs deal with vulnerable borrowers, RBI oversight is more detailed than standard NBFCs.

Eligibility Criteria for NBFC–MFI Registration

To qualify as an NBFC–MFI, the company must:

• Be incorporated under the Companies Act, 2013

• Maintain the prescribed Net Owned Fund as per RBI norms

• Ensure at least 85% of its net assets qualify as microfinance loans

• Follow RBI guidelines on borrower income, loan size, and tenure

• Have a strong Fair Practices Code and grievance redressal system

We evaluate eligibility before filing so the application stands on solid ground.

Our Microfinance Company Registration Services

1. Feasibility & Eligibility Assessment

We assess:

• Promoter background and financial capacity

• Proposed microfinance business model

• Capital adequacy and NOF readiness

• Regulatory fit under RBI MFI norms

This avoids misclassification and future compliance issues.

2. Entity Structuring & Capital Planning

We assist with:

• Incorporation or restructuring into NBFC format

• Shareholding and board structuring

• Capital infusion planning

• Alignment with RBI microfinance thresholds

Structure matters more in MFIs than in most NBFCs.

3. Policy Drafting & Documentation

We prepare:

• Detailed business plan and financial projections

• Fair Practices Code specific to microfinance

• Risk management and credit policies

• Declarations and disclosures for RBI

All documentation is customised. No generic drafts.

4. RBI Application & Approval Process

We manage:

• Filing of NBFC–MFI application

• Submission to RBI and follow-ups

• Handling RBI queries and clarifications

• Coordination until Certificate of Registration is granted

Our focus stays on regulatory clarity and responsiveness.

5. Post-Registration Compliance Support

Once registered, we assist with:

• RBI reporting and periodic returns

• Compliance calendar setup

• Policy implementation and monitoring

• Inspection readiness and audit coordination

Registration is only the first step.

Why Choose N D Savla & Associates?

Microfinance regulation requires precision.

• Experience with RBI-regulated financial entities

• Clear understanding of evolving MFI norms

• Practical guidance on borrower protection compliance

• End-to-end support from planning to operations

• Single-point accountability

We don’t rush approvals. We prepare for sustainability.