1. The company ” under Companies Act, 2013. Microfinance Company carries on the business of taking deposits and lending money among its members. Microfinance Company carries no business other than defined in the Memorandum of Association of the Company.
2. Mode of repayment of deposit shall be through cash or cheque as per the request of depositee. Any payment above Rs.20,000 shall be made through cheque only.
3. The maturity period of deposit may vary from 12 months to sixty months as per the choice of the depositor and schemes framed by the company from time to time: The rate of interest on the deposits shall be as follows: However, the above interest is subject to the following conditions: – No deposit shall be repaid within a period of three months from the date of acceptance. – If deposit is withdrawn at the request of the depositor after three months, the depositor shall not be entitled to any interest up to six months from the date of deposits. – Where at the request of the depositor, a Microfinance makes repayment of a deposit before the expiry of the period for which such deposit was accepted by Microfinance, the rate of interest payable by Microfinance on such deposit shall be reduced by two per cent from the rate which Microfinance would have ordinarily paid, had the deposit been accepted for the period for which such deposit had run. – However, in the event of death of a depositor, the deposit may be repaid prematurely to the surviving depositor or depositors in the case of joint holding with survivor clause, or to the nominee or to legal heir with interest up to the date of repayment at the rate which the company would have ordinarily paid, had such deposit been accepted for the period for which such deposit had run.
4. The summary of financial statement of the company is not available and hence and the financial summary is not available.
5. The depositor may be paid either monthly, quarterly, half yearly, or yearly as agreed between the depositor and the company or as per the scheme framed by the company.
6. The Microfinance Company shall also have the right to repay the deposits prematurely and can make any adhoc payment to the depositor as per the policy.
7. The Microfinance Company carries a right to reserve; it may deny keeping the deposit or lending to any person or a group without stating any reason for it.
8. The fixed deposit may be renewed at the request of the depositor.
9. In case of nonpayment of the deposit or part thereof as per the terms and conditions of such deposit, the depositor may approach the Registrar of companies having jurisdiction over Microfinance.
10. In case of any deficiency of Microfinance in servicing its depositors, the depositor may approach the National Consumers Disputes Redressal Forum, the State Consumers Disputes Redressal Forum or District Consumers Disputes Redressal Forum, as the case may be, for redressal of his relief.
11. Declaration by Board of Directors: Board of Directors of the Company hereby declare that all the requirements of Companies Act, 2013 and the rules including the Microfinance rules, 2014 made there under in respect of the subject matter of this form and matters incidental thereto have been complied with. We also declare that all the information given herein above is true, correct and complete including the attachments to this form and nothing material has been suppressed. We also declare that it is our first financial year so we don’t have financial summary, however, the company has Rs.15 lakhs as its Paid-up capital and also complying with Microfinance rules to run a true and fair business.
12. Important Note: Neither Reserve Bank of India (RBI) nor Central Government does undertake any responsibility for the financial soundness of Microfinance or for the correctness of any of the statement or the representations made or opinions expressed by Microfinance and the deposits accepted by Microfinance are not insured and the repayment of deposits is not guaranteed by either the Central Government or the Reserve Bank of India.
13. Microfinance shall obtain documentary evidence of the depositor in the form of proof of identity and address as under:
1. A) Proof of Identity (any one of the following) – Passport – Unique Identification Number – Income tax PAN Card – Election Photo Identity card – Driving License
2. B) Proof of Address (any one of the following) – Passport – Unique Identification Number – Driving License – Telephone Bill (Should not be more than two months old) – Bank Account Statement (Should not be more than two months old) – Electricity Bill (Should not be more than two months old)

Exhibit 1: Terms and Conditions for Lending

1. Any individual loan shall not exceed Rs.2 Lakh.
2. Microfinance shall provide loan only against gold, immovable Property and FDR.
3. The value of Gold loan shall not exceed 80% of the gold secured.
5. The value of loan against immovable property shall not exceed 50% of the property secured.
6. The repayment of gold loan shall not exceed one year.
7. The repayment of loan against immovable property shall not exceed 7 years. The repayment of loan against FDR shall not exceed the maturity period of FDR.
8. The maximum interest rate charged on loan shall not exceed 20.00%.