Microloans have emerged as a powerful financial tool to uplift low-income individuals, small entrepreneurs, and rural communities. These loans enable people without formal credit history to access small amounts of capital.
Microloans typically range from ₹1,000 to ₹1,00,000 and are designed for those who lack access to traditional banking services.
Who Can Benefit?
- Small shop owners
- Street vendors
- Farmers and artisans
- Women-led Self Help Groups (SHGs)
- Low-income urban households
Providers of Microloans
- Microfinance Institutions (MFIs)
- NBFCs
- Government-supported SHGs
- Fintech companies with alternate credit scoring
Advantages
- Minimal documentation
- Flexible repayment options
- Doorstep services in rural areas
- Promotes women empowerment and entrepreneurship
Challenges
- Higher interest rates (18–28%)
- Risk of over-indebtedness
- Limited loan size
💡 Rupi247 Tip:
Our digital lending model uses mobile and alternative data to offer responsible microloans—even to those without a CIBIL score.
Our digital lending model uses mobile and alternative data to offer responsible microloans—even to those without a CIBIL score.