Microfinance is very vital for the economical entrepreneurs and moderate small business owners (SME). Financial capital is their capital requirement. It is a wide category of financial services as compared to others. They require funds and banking services for the growth of their business needs. The bank acts an associate for this purpose. The bank offers various loans for their clients. This business model is extremely ideal for the startups and new companies as they require a reliable and an adequate resource in terms of monetary flow for them. The bank has a comfortable process for lending finance to them.