Microfinance companies (MFIs) are those organizations that provide financial transactional facilities for small-scale businesses, micro-entrepreneurs, financially weak, and low-income people. Most of these kinds of people cannot approach core banking organizations to meet their basic financial requirements. Hence, the best way to achieve financial freedom for the weak sections of society is to go through an MFI.
The microfinance firms mainly offer loan facilities for women, farmers, small-scale businesses, low-income customers, micro-entrepreneurs. They also provide savings in the form of deposits, transfer of funds, micro-insurance, FD (fixed deposit), and RD (recurring deposit) .etc.
MFIs provide small-scale financial services, but their client base is huge enough to compare with the regular banking institutions. Hence, MFIs also need to utilize an online-based digital system to supervise over their whole financial operations.