What is Microfinance and What Does It Bring?

From the year 2018 up to the present time in the current year, the sector of small and medium enterprises has seen a 60% boost in growth in India. Most of it has been in the tier-3, and tier-4 cities, which signifies the necessity and availability of external funding too.

People residing in these cities generally belong to the low-income group with limited source of immediate financing. Microfinance can meet the funding requirements to start a small business. Bajaj Finserv Loan Against Property also brings several financing options to fulfil such needs. So, for queries like what is microfinance, here is the answer.

In the current lending market scenario, microfinance is a popular term associated with lending available for the people from the low-income group. Since microfinance and micro lending are synonymous, the answer to what is micro lending lies here too.

Financial institutions in India bring forth financing options for people residing mainly in rural and semi-urban regions. With marginalised access to the lending market, they find it challenging to fund the establishment or expansion of their small businesses. Microfinance can bridge this gap between low capital availability and strategies which require significant funding.

With low rates of interest and flexible repayment tenures, micro credit finance becomes the best source to avail necessary funding. Also, people with limited exposure to savings or money management can borrow the amount from credible institutes and gain an insight into financial management while fulfilling their funding needs.

Also Read: What are Interest Rates on Equipment Finance

Alternatively, those who own property can opt for a loan against property from Bajaj Finserv. The secured loan comes with attractive features like low interest rates, long tenure, easy repayment, etc. Get amounts up to Rs. 3.5 crore with a loan against property and meet all big or small budget financing needs of your business.

How Can You Use Microfinance?

As you know what microfinance is now, utilise it to expand your business and boost its capacity by investing in –

  • Purchase of equipment that attracts high value.
  • Buying vehicles necessary for the business’ operation.
  • Renovating the existing space of the company’s operation.
  • Buying a new office space.
  • Investing in hiring more qualified staffs.
  • Meeting training costs.

Also, establish a company with this amount and install necessary equipment to proceed with its business operations. Now that you know how to use microfinance, apply for Bajaj Finserv Loan Against Property for businesses.

It ensures that you do not come across any funding shortage while implementing the plan. Meet the eligibility criteria and documents required to apply successfully. You can also use the loan amount to fulfil any personal financial obligations as it comes with no restriction on end usage.

Also, check the applicable mortgage interest rates and charges and use our Loan Against Property EMI Calculator to manage your monthly outflow effortlessly.

Apply for the fastest loan against property with Bajaj Finserv through an online application form. Receive approval within 48 hours of application and disbursal within four days from the day of approval.