Microfinance companies have been established for the purpose of providing financial services to the micro-sector of the economy, which basically consists of a poor section, farmers, small traders, and retailers in rural and semi-urban areas most of them belongs to unbankable locations.
These are the organizations established for the purpose of carrying on the business of extending micro-finance services and may also operate in the form of a society, a trust, or a co- operative society.
Microfinance allows people to safely take on reasonable small business loans in a manner that is consistent with ethical lending practices. Aanya development services specially focus on helping women in particular.
With the emergence of the financial sector bringing into existence a wide variety of financial
products, there is an increased diversification in the customer base.
On one hand, the banks
and large financial institutions are concentration on big business; on the other hand, NBFCs
have taken the charge of the financial needs of the unorganized sector of the economy.
of the principals guiding the working mechanism of micro-finance companies are as follow:
A variety of other financial services will be needed by the poor and not just loans. therefore, it
is a powerful tool to eradicate poverty.
It concentrates on building financial system for the poor and unemployed.
It strives to build permanent local financial institutions that aim to attract domestic deposits,
recycle them into loans, and provide other financial services.
Micro-finance companies are having various objectives Aanya development services strongly believes in these objectives.