Microfinance Company institutions were established by the Indian government in order to provide simple loans to the general public. These organizations provide financing to small and medium-sized businesses (SMEs) and other types of businesses that find it difficult to obtain loans from large financial institutions and banks. As a result, a Micro-Credit agency or a Microcredit Institution is the name given to this type of business. This organization is set up to provide small loans and funding to businesses.