Service Overview
A type of NBFC formed to cultivate the habit of savings among members and lend money only to its own members, regulated under Section 406 of the Companies Act.
Who Needs It / Purpose:
Groups wanting to run a member-only mutual benefit savings and lending institution at a local/community level.
FAQs:
Q: What is the minimum capital required?
A: Generally a minimum equity capital of Rs. 5 lakh, with net owned funds of Rs. 10 lakh required within the first year.
Q: How many members are needed to start?
A: At least 7 members, of whom 3 must be directors.