Can I start microfinance business in 5 lacs ?

POSTED BY Akhilesh Prasad ON May 8, 2014 3:59 pm COMMENTS (3)

I want to start microfinance business….but I don’t know how much money needed for and what kind of
license and registration required for this.

somewhere people said to me lots of money required for starting microfinance business and  RBI rule is 25 lacks
for license or 2 corer for starting business. i want to know it is true of false…

I have 5 lacks rupees so can I start ??

please guide me…

3 replies on this article “Can I start microfinance business in 5 lacs ?”

  1. ashalanshu says:
    May 9, 2014 at 10:55 am

    Dear Akhilesh, if you want to operate in a non organized way, certainly you can start with 5L Rs. if you want to operate in organized way, please contact a CA or Tax professional to arrange the requisite permissions for you.

    Thanks

    Ashal

    Reply
  2. Akhilesh Prasad says:
    May 9, 2014 at 9:36 am

    yes I know ashalanshu…their is no any certain legal term in microfinance to take..but jabhi hum money dete hai to wo kisi 1 person ko nahi balki 1 group ko dete hai. if borrower do not return your money then group member take his/her resposbility to return money. and this business will run on your goodwill and contacts.

    and my question sill awaiting your answer…can I start in 5 lacks rupees ??
    and what kind of license and registration required ??

    thanks
    akhilesh

    Reply
  3. ashalanshu says:
    May 9, 2014 at 3:59 am

    Dear Akhilesh, what ‘ll happen if the borrower do not return your money?

    Thanks

    Ashal

    Reply

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