Micro Finance software will print collection sheets. It can restructure and reschedule the loan repayment. There are unlimited numbers of savings products that can be managed through the software which can be associated with any type of customer. The current account can be managed, with or without interests. Visit http://www.microfinancesoftware.net
2. ADVANTAGES:
• Simple requirements
• Low possibility of interference by
regulator
• Tax exemption for charitable
activities
• Have been permitted to act as agents
for micro insurance by IRDA
Society under Societies
Registration Act, 1860
3. Disadvantages:
• No system for equity investment or ownership
so unattractive for commercial investors
• Not permitted to accept deposits from
customers.
• Vulnerable to the use of ‘usurious interest
prevention Acts’ of various state governments
Society under Societies
Registration Act, 1860
4. ADVANTAGES:
• Simple requirements and low
possibility of interference by
regulator.
• Tax exemption for charitable activities
Trusts under Indian Trusts
Act, 1882
5. Disadvantages:
• No system for equity investment or
ownership so unattractive for commercial
investors
• Not permitted to accept deposits from
customers
• Vulnerable to the use of ‘usurious interest
prevention Acts’ of various state
governments.
Trusts under Indian Trusts Act,
1882
6. Advantages:
• Simple procedures and low regulator
interference
• Has several exemptions from
requirements of Companies Act
• Can take up the activity of microfinance
lending without the permission of RBI
• Can obtain income tax exemption
• Have been permitted to act as agents for
micro insurance by IRDA
Not for profit Companies under Section
25 of the Companies Act, 1956
7. Disadvantages:
• Not permitted to accept deposits
from customers
•
• Not attractive to commercial
investors as not permitted to
distribute dividend
Not for profit Companies under Section
25 of the Companies Act, 1956
8. • Advantages:
• As they are regulated by RBI, investor
confidence tends to be high
• Attractive for investors as exit options are
possible Disadvantages
• Minimum capital requirements of Rs.20 million
• Not permitted to raise deposits unless they
complete 2 years and obtain investment grade
rating; the latter condition is difficult to fulfil
for MFIs
Non-banking finance companies
9. Advantages:
• Simple procedures
• Can accept deposits
• Can raise equity from members
Disadvantages
CO-OPERATIVES UNDER
VARIOUS STATE ACTS
10. Advantages:
• Can be formed with 3000 members and capital of
Rs.1,00,000
• Can accept member deposits
Disadvantages
• Licenses no longer being given due to past
problems with UCBs
• Dual regulation
Urban Cooperative Banks
11. Disadvantages:
• Lack of regulation makes it difficult to
attract funds
• No tax exemption
Urban cooperative banks