Microfinance companies in India, unlike traditional lenders like a bank can perform plenty of roles. Some of them are enunciated in this post.
Compared to traditional lenders like a bank, a microfinance company can perform one of the most important roles in a developing nation like India. The said role is the eradication of poverty and unemployment. Thanks to recent relaxations in some detrimental norms, NBFCs now can take this responsibility and fulfill them more effectively.
Well, an MFC can perform the role of eradicating unemployment and poverty from India through the following ways -
Quick Awarding of Loan Amount Means a Business can Start its Operations in No Time
The paperwork offered by microfinance institutions in India is mostly online. This also shortens the processing time. On top of this, the loan applicants are awarded loans without collateral. This means the loan amount gets awarded to the account of the applicant within hours.
The result is simple – a business can begin its operations in no time thus allowing the owner of the same to start making profits in no time.
Similar to a Bank, MFCs Now Offer All Loan Types
As per the inputs from experts associated with some of the leading microfinance institutions in India, MFCs in the nation now offer all types of loans.
This is a strategically effective step that is slowly improving the image of NBFCs by repositioning the microfinance sector as a trustworthy figure.
NBFCs now offer –
- Housing loans
- Gold loans
- Car loans and
- Personal loans.
On top of this, irrespective of the type of loan one applies for from an MFC, the paperwork, as well as the processing time, remains quick and easy.
Why One Would Look for a Job When One can Run a business?
A significant number of people in India still live under the poverty line. On top of his, the nation still has a high unemployment rate. These two issues are being actively dealt with by MFCs.
Well, these ventures allow unemployed people as well as people in financial distress to start their own companies.
MFCs financially support loan applicants who come to them with lucrative business ideas. It has been proven time and again that entrepreneurship is an effective and easy way a person can uplift the status of their life in no time. People ruining critically acclaimed MFCs also believe in his mantra.
MFCs also compel people taking monetary support from them to develop the habit of saving money, instead of spending it all. MFCs also enable one to grow their wealth in the form of equity over time. However, it would be impossible for someone to enjoy all an MFC has to offer if they fail to choose a reliable one. This is why, while searching for an MFC, one should always go for a company that has been in business for a while and comes with plenty of referrals