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NBFC-MFI Registration

NBFC-Microfinance Institution registration with RBI — for entities providing micro-credit to low-income households with minimum NOF of Rs.5 crore.

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Overview

An NBFC-Microfinance Institution (NBFC-MFI) is an RBI-registered NBFC that derives at least 85% of its net assets from qualifying assets — small loans up to Rs.3 lakh to borrowers with annual household income not exceeding Rs.3 lakh (rural) or Rs.3.5 lakh (urban/semi-urban). NBFC-MFIs are the primary regulated institutional channel for microfinance in India, serving rural and semi-urban low-income households who lack access to formal banking.

The minimum Net Owned Fund requirement for NBFC-MFI is Rs.5 crore (Rs.2 crore for Northeast states). NBFC-MFIs are regulated under the RBI's SRO framework (Self-Regulatory Organisation — Sa-Dhan, MFIN) and must comply with responsible lending guidelines including loan amount caps, income thresholds, and borrower protection norms. MFiling manages complete NBFC-MFI registration with RBI including regulatory documentation, business plan preparation, and application submission.

MFiling professional charges: from Rs.49,999.

Key Benefits

Legal Authority to Provide Micro-Credit
Only RBI-registered NBFC-MFIs can conduct regulated microfinance operations in India.
Priority Sector Classification
NBFC-MFI loans qualify as priority sector credit — banks actively refinance through NABARD and SIDBI.
Lower NOF Requirement than Standard NBFC
Minimum Rs.5 crore NOF vs Rs.10 crore for standard NBFC — more accessible for MFI promoters.
Access to NABARD / SIDBI Refinance
RBI-registered NBFC-MFIs access subsidised refinance from NABARD and SIDBI for onlending.
SRO Framework Provides Operational Guidance
Sa-Dhan and MFIN SRO membership provides industry best practices and regulatory compliance guidance.

Documents Required

Certificate of Incorporation and MOA/AOA with MFI Objects Clause
Audited Financials showing NOF ≥ Rs.5 crore (or Rs.2 crore for NE states)
Business Plan — Target Borrower Profile, Geographic Focus, Loan Products
KYC and Financial Background of All Promoters and Directors
Management Team Profile with MFI / Banking Sector Experience
Technology and Credit Appraisal Systems Documentation

How it Works

Incorporate Company with MFI Objects (Week 1–2)

Register company with objects expressly covering microfinance lending to low-income households.

Build Minimum NOF of Rs.5 crore (Pre-requisite)

Raise equity from promoters and institutional investors — document source of funds clearly.

Prepare RBI MFI Application (Week 4–10)

Business plan, qualifying asset computation, promoter KYC, management profiles, and technology documentation.

Submit to RBI Regional Office (Week 10)

File complete application package with the jurisdictional RBI Regional Office.

RBI Review and Queries (6–12 months)

RBI scrutinises application — queries on qualifying asset composition, management experience, and lending norms.

Certificate of Registration as NBFC-MFI Issued (12–18 months total)

RBI grants NBFC-MFI status — entity can commence regulated microfinance operations.

Frequently Asked Questions

What qualifies as a "qualifying asset" for NBFC-MFI status?
Under RBI's Master Direction on NBFC-MFIs, qualifying assets are loans given to borrowers with annual household income not exceeding Rs.3 lakh (rural) or Rs.3.5 lakh (urban/semi-urban), with individual loan amount not exceeding Rs.3 lakh, and total indebtedness of borrower not exceeding Rs.3 lakh. 85% of the NBFC-MFI's net assets must be in these qualifying loans to maintain NBFC-MFI status.
Can an existing Trust or Society convert to NBFC-MFI status?
No. Only entities registered as companies under the Companies Act can be registered as NBFC-MFIs with RBI. Trusts, societies, and cooperatives must either register a separate company and apply for NBFC-MFI status, or convert their existing organisation into a company. Many large MFIs started as NGOs or societies and later incorporated separate NBFC-MFI companies for their commercial microfinance operations.
Service Price
₹49,999
Starting price · GST extra
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Legal Authority to Provide Micro-Credit
Only RBI-registered NBFC-MFIs can conduct regulated microfinance operations in India.
Priority Sector Classification
NBFC-MFI loans qualify as priority sector credit — banks actively refinance through NABARD and SIDBI.
Lower NOF Requirement than Standard NBFC
Minimum Rs.5 crore NOF vs Rs.10 crore for standard NBFC — more accessible for MFI promoters.
Access to NABARD / SIDBI Refinance
RBI-registered NBFC-MFIs access subsidised refinance from NABARD and SIDBI for onlending.
SRO Framework Provides Operational Guidance
Sa-Dhan and MFIN SRO membership provides industry best practices and regulatory compliance guidance.

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₹49,999
Starting price · GST extra

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