The Microfinance Company is essentially the financial organizations that provide small-scale financial services in the form of loan, credit, or savings. These organizations are acquainted with facilitating the credit framework for independent ventures as they don’t get a loan from banks because of their perplexing process. In this way, it is ordinarily named as a Micro-credit association. They provide small loans to varied small businesses or households that do not approach to formal banking channels or eligibility for loans. They provide small loans that are under Rs.50,000 for rural areas and for urban it is Rs.1,25,000. Registering the Section-8 Company with MCA (Ministry of Corporate Affairs) is the easiest way to register a Micro Finance Company in India. Without charging any peripheral cash or assurance security. It can give credits at reasonable rates coordinated by the RBI and central government. They are a colossal help to all country and farming development including income and employment creation. There are essentially 2 kinds of microfinance organizations that are permitted in India, one is which has to be registered with the RBI and another is the non-benefit type, which is enlisted as section 8 company and does not need RBI approval