Micro Finance Company Consulting Service

Microfinance Success with Enterslice: Cost-effective, Expert Guidance, Flexible Solutions. From Registration to Growth – We Navigate, You Thrive!

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Micro Finance Company Consulting Service

Microfinance company is one of the most promising and cost-efficient tools to fight against poverty. It is evident that microfinance has shown progressive results in improving lives on account of better incomes in nearly 100 million rural households. Enterslice experts offer microfinance consulting services to ensure your business remains financially stable and easily secures its aims and objectives. Our multidisciplinary approach will offer valuable insights into your financial aspects to grow your business utmost in an ever-evolving landscape. Our consulting includes a wide range of services, starting with registration, regulatory compliance, and internal assessment to mitigate business risks and keep your business compliant in a competitive world.   

What is a Micro-Finance Company Consulting Service?

Microfinance, also known as microcredit, is considered a kind of banking service offered to low-class income individuals or groups who otherwise have no access to financial services. It enables people to take small business loans safely in a manner that is consistent with ethical lending practices. At Enterslice, our highly experienced experts offer innovative and highly practical microfinance consulting for businesses to operate in a competitive environment with the most effective business capabilities. We offer consulting, including microfinance banks (MFB), microfinance institutions (MFI), and help to rural support programs (RSP). We offer an array of services, including MFI institutional appraisals, program evaluation, business strategy development, valuable insight based on market research, helping to develop new products, business structuring, marketing, etc.

Our Consulting services are shared with microfinance startups.

Cost Effective

Our Experts offer cost-effective business solutions for newly entered Startups in the microfinance Landscape. We will help them to manage their financial status.

Expert Guidance

Our esteemed industry professionals have in-depth knowledge and understanding and are capable of helping you make informed business decisions based on market trends and operational analytics.

Flexibility

Navigate our flexible and customized expert consulting deemed to comply with your business-specific needs and requirements. Our advice will help you secure your business objectives.

Get expert assistance in Micro Finance Business Landscape

Registration Process

Enterslice will help you in the registration process with step-by-step guidance and proper assistance to secure a proper registration certificate for your microfinance business. Our effort will help you get a license with no hassle.

Business Setup Services

Our expert guidance and assistance on the key steps to set up business starts and ends, from market research to the implementation of innovative technological systems in your microfinance business.

Customized Business Solutions

We will analyze the industry data and develop strategic business road maps to help your business maximize its revenue and minimize operational risks. We will offer customized solutions to drive your business growth toward success.

Regulatory Compliance

Our support will help your business stay compliant with regulatory norms, enhance your business to minimize tax exposure and keep you focused on the risks presented by ever-evolving and increasingly complex taxation rules.

We ease the registration process for microfinance businesses.

The entire process of registering a microfinance company within India can be broadly classified into two stages. The first starts with the registration of a new limited company, and the second is complete with the proper securing approval from the Reserve Bank of India to operate or commence business as a microfinance company. A microfinance company is simply a kind of non-deposit-taking NBFC that deals in offering low-credit loans to individuals or a group that basically resides in rural and semi-urban regions where banking facilities are not easily available. It offers loans to farmers, small businessmen, and agriculturists with many more needy people. The loans are offered under a prescribed rate of Interest without demanding a marginal collateral value. To start a business as a microfinance company within a rural or semi-urban area, registration of a new limited company under the Companies Act 2013 is mandatory.

Our experts are well-versed and experienced in the incorporation process of microfinance companies and can help you with the entire process of registration. After the incorporation, it is mandatory to have a minimum net owned funds of 5 crores in the form of equity share capital rather than preference share capital. The limit has been reduced to 2 crore NOF for the North-East region. It becomes mandatory for companies to have an auditor’s report prepared for NOF and requires all previous transactions and investments to be mentioned by the applicant company, including its subsidiary company, in the previous years. The applicant company must furnish a board resolution in favour of microfinancing, complying with all the requisite rules and regulations laid by the RBI and central government.

Moreover, it is required to open a bank account to deposit the requisite NOF and must obtain the banker’s report prior to making an application to RBI for MFC, consisting of all the financial transactions duly made within the previous year by the applicant company and its subsidiaries. Now, the desired company to operate its business as NBFC-MFI needs to file an application to RBI along with the prescribed list of documents. After considering the application, the RBI will initiate a verification with due diligence and, if the RBI seems to be satisfied with the furnished documents of the applicant company, will possibly grant the certificate to commence the business operations as a Microfinance Company.

While planning to start your business as a microfinance company, you must be ready for the registration challenges as the incorporation process itself comes with its own complexities, ranging from the requisite process, rigid legislations, and types of licenses required to start a business. At Enterslice, our expertise in incorporation will definitely help you eliminate these roadblocks and ensure your company is incorporated in the right way, complying with the needs of the business. Our experts will conduct pre-establishment analysis, supported by restructuring and tax experts if required, to avoid unnecessary expenses for our esteemed clients. Our professional experts are skilled in the registration process and help you with step-by-step guidance and proper assistance to secure a proper registration certificate for your business. Our incorporation supports ensuring your company's secretarial risk and responsibility are managed continually and encourages you to keep your focus on business core operations.

We encourage you to navigate the complexity of the Microfinance financial landscape.

Budget Forecasting

Our industry experts are using advanced innovative technologies to support our clients with accurate revenue forecasts. Our experts also support businesses by offering them optimization services to enhance their operational revenue potential in the microfinance industry. Using our skills, you can easily boost your business to the next level, navigate the complexity of microfinance business, and get confidence in making informed business decisions related to business activities.

Accounting and Bookkeeping

We will help your business implement a robust and advanced accounting and bookkeeping system capable of tracking and monitoring your financial transactions and cash flow, maintaining accurate reporting, etc. This will help you in making an informed business decision based on your financial business database.

Cash Flow Management

Our microfinance experts will help your business to stay alive and solvent. We will manage and maintain your business cash flow using our professional intellects through forecasting and business planning models. We are more likely to work closely with our clients to manage their business cash flow most effectively and efficiently.

Market Outlook of the Microfinance Sector

The global microfinance market was valued at $178.84 billion in 2020 and is projected to grow beyond $496.90 billion by 2030, with an increasing CAGR of 10.8% from 2021 to 2030. Microfinance loans increased by 21.3 per cent year on year at INR 3.5 trillion in the financial year 2022-23 in India, backed by revised regulatory rules and high demand. According to industry group Sa-Dhan, the asset quality profile has enhanced, with loans due in more than 90 days dipping from 1.06 to 2.43% the previous year. It is evaluated through the numbers that the microfinance industry has overcome from the impact of COVID-19 and is on the right growth path. Further, the NBFC-MFI group remarked on 37% year-on-year growth in their portfolio, which is valued at INR 1.39 trillion. At the same time, the small finance bank remarked a 19.03% growth value of INR 58,431 crore in the lending book. NBFC group remarked with a 49% year-on-year growth value of INR 29,664 crore by the end of March. Banks valued with 3.22 % growth in a portfolio with INR 1.2 trillion crore. Microfinance sector loans increased with 10% year-on-year growth of 13.6 million in FY-23 from 23.39 million in FY22. Moreover, the NBFC registered the highest growth rate of 23%, NBFC-MFIs at 15%, banks rate at 6.0%, and SFBs with 5.0% recorded.

We help in Market Research to develop your products.

As of now, the microfinance market is growing rapidly and becoming more competitive. Microfinance companies must focus on customer preferences and priorities prior to offering services. In this sector, it becomes more important to focus on service quality to compete in an ever-evolving competitive environment. Our industry experts will help MFIs and MFCs learn about customers' priorities, gather information on current demand, and implement a new product designed as per the demands. We will work closely to make an in-depth exploration of how the market behaves and analyze your business operations and trends that impact your business. Our expertise can help businesses improve the quality of the products and services delivered to their customers and enhance their competitiveness. Utilizing our vast network, we will support our client businesses in delivering a high-quality product designed to meet the needs of their customers. We make them capable and develop the appropriate ability to understand the process of data collection, identify and distinguish different market research, and implement appropriate innovative tools to re-design their existing financial product and help them make a successful launch in the market. At Enterslice, we leverage strategies and operational approaches and implement innovative technology to develop and launch products in such a manner that enhances operational efficiency, quality, and cost performance.

We manage your Business Credit Risk.

Our industry experts have numerous ways to manage and deal with your business credit risk. We will work closely to assess various factors that help you gain more confidence in your business transaction. Our expertise will help you optimize the entire loan process, including underwriting, pricing, and delinquency management. We will develop an effective and efficient structure to oversee your business transactions and make you aware of the risks to facilitate better operational and strategic decision-making. Our experts will assess your business design and implement an efficient credit risk strategy, which will help you to achieve your strategic business aims and ensure your business stays far away from risk as our industry experts appropriately manage it.

We help stabilize your business loan portfolio.

Our expert helps businesses in managing their loan portfolio to mitigate the risks that are inherent in the credit process. As we know, lending is the primary activity for microfinance businesses, and the loan portfolio is the largest asset and a predominant source of revenue. Moreover, the reasons may vary, from poor loan portfolio management to issues that have always been the cause of the failure of microfinance companies. Our industry experts will assess your business and effectively manage your business loan portfolio and credit functions to save your organization from unexpected business risk. We will conduct an assessment of credit culture, manage your business information system, and manage portfolio segmentation and risk diversification to enhance efficiency in your business operations. Utilizing our well-versed integrated team, you can easily keep their focus on core business operations that really matter a lot.

Our Expertise Approach towards high-quality guidance

Ethical Practice

We at Enterslice believe that ethical practice is the only way to streamline your corporate governance. Our professionals offer proper guidance and assistance to a wide range of businesses, ensuring that an ethical practice is in existence and helping them stay compliant in accordance with standard norms and regulations.

Expertise

Our experts are deeply rooted in updates concerning laws and compliance with the microfinancing sector. We assist businesses with expert advice on such complex rules by ensuring that businesses are protected or prevented from the future course of any government action.

Innovative Solutions

Our experts provide innovative solutions to complex problems using our industry experience and skills and ensure our client's business stay at the forefront in the microfinance landscape. We also ensure that all regulations related to RBI and other regulatory bodies are properly adhered to by our client business.

We help microfinance companies with Risk management and Internal control Measures.

It is evident for any kind of lending company that the risk of income loss just because of processing errors, lack of information, non-compliance in accordance with specific loan policy, excess concentration of credit risk and employee fraud turn out to be a major cause of their risk exposure. Generally, a microfinance company lends loans to a wide range of the population and is subsequently involved with numerous transactions. Such volume of transactions needs to be reduced with fewer risks on or before the disbursement of loan amounts to client accounts, and this can be possible using a detailed and advanced portfolio tracking system. At Enterslice, our experts will help businesses undergo efficient and effective control mechanisms to administer and manage cost reduction and gaps control and mitigate the weakness in loan administration so as to prevent future loss. We will work closely with businesses and help develop appropriate strategies that enable lending institutions to manage and prevent further unexpected loans effectively. Our experts can install internal audit procedures and risk management systems in your business, which helps you make informed business decisions.

Our Strategic Plan Services for Microfinance Companies

At Enterslice, we offer a full spectrum of financial services and support for your business activities. We work closely with you to help you meet compliance obligations and support you in structuring your new financial product in the market. Utilizing our professional, in-depth insights and technical expertise with advanced technological solutions will ensure your business success.

Financial Service Regulation

Our integrated service covers the full spectrum of financial service space, regulatory review and financial structuring, authorization, licensing, regulatory compliance and product distribution, along with marketing. Our expert will work closely with you and help to identify, interpret, and support new financial developments. Utilizing our tech-innovative services and enabled sound legal advice, businesses can easily manage their business challenge and convert opportunities across financial operations.

Wealth Management Service

Our expert at Enterslice has in-depth knowledge and industry experience to offer professional support on fund formation and securing funds for all kinds of investment funds such as structured, listed and unlisted, specialist and alternative funds. Our experts help fund managers keep legal considerations top in mind as they support navigating complex investments and evolving investment considerations such as ESG.

Lay out Strategic Plans

We work closely with you and develop a strategic financial plan to maximize your resources and chart a clear and visible path to secure your business's financial goals. Our experts will analyse your business and help you identify your strengths and weaknesses, opportunities, and threats to prepare a customized financial strategy to enable you to achieve the business objectives.

Frequently Asked Questions

 

A microfinance company is a kind of financial institution that provides small loans, savings accounts, and insurance facilities to individuals or groups with low income or who are excluded from regular banking loan criteria.

Microfinance companies work to deal with and serve underserved customers who have limited access to regular banking and offer them small loans with flexible repayment terms and conditions depending upon their income status.

The clients or the customers of microfinance companies are generally undeserved, economically backward candidates, often engaged in small business.

Microfinance companies offer a wide range of financial products such as microloans, saving accounts, and insurance and provide financial awareness to empower their customer with updated financial knowledge. 

Microfinance companies depend upon alternative methods and techniques to assess the creditworthiness of their customers, such as community-based recommendation group lending models, and interpret the character of their borrowers and the type of business.

Group lending is a common practice under microfinance as the individuals form small groups and are responsible for other people's repayments, which ultimately creates and builds an atmosphere of community responsibility to mitigate risk.

Microfinance plays an important role in alleviating poverty and facilitates small loans to underserved sections of society who don't have access to a regular banking system. It helps them to start their own business for livelihood and is more likely to contribute a major role in the growth of a country.

Microfinance interest rates can go high because of associated risk and operational costs to serve clients in the underserved market. However, there are some existing microfinance companies that keep their interest rate reasonable and sustainable.

It is not necessary for microfinance companies to be concerned only with developing countries. However, it seems possible that microfinance companies can operate in a developed nation to address the financial needs of underserved communities.

Microfinance companies are strict on ethical lending practices, encourage financial inclusion, and prioritize the social impact by considering their client's and community's well-being.

Yes, microfinance plays an important role by empowering women to offer financial resources and promote entrepreneurship among them to foster economic independence.

Absolutely, microfinance companies design their financial product and offer services to those individuals who have limited access to business or have no past experience. It offers vocational training and helps them to develop entrepreneurship skills in them. 

Microfinance companies develop various strategies, including flexible repayment schedules and loan structuring, which help their clients overcome financial issues. 

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