If we compare banks and MFIs, the latter look like more flexible and easier to manage structures. From this point of view, it is easy to highlight a number of their main advantages.
a much simpler registration procedure; lack of requirements for the minimum amount of authorized capital; significantly milder economic standards; easy control by state bodies; no need to divert funds to create insurance funds and reserves (mandatory for banks) . These advantages of MFIs served as the basis online loans sri lanka for the dynamic and diverse development of this sector of the financial market. Microcredit is a common financial service. Its meaning is simple and quick issuance to the consumer of small cash loans for a short period. In general, the microfinance market is divided into three large groups: loans to small businesses (issued to legal entities and individual entrepreneurs for business development) ; consumer loans (for a period of six months to a year) ; and microloans "to salary" (for a short period of up to 30 days) .