Choose the activity before choosing the system
“Microfinance” can describe different operating models. A lender that uses its own or institutional funds is not the same as a company that accepts deposits from the public. Define your funding source, customer segment, loan purpose, ticket size, repayment frequency, branch model and field-collection process first.
The Central Bank of Sri Lanka states that the Microfinance Act’s definition combines accepting deposits with providing financial accommodation or other financial services. It also states that moneylending without accepting deposits is not mandated to obtain a licence under that Act. This does not remove obligations under other laws. Confirm the current position with CBSL and qualified Sri Lankan advisers before trading.
Official references: CBSL licensing FAQ, microfinance supervision, and current directions and circulars.
A practical setup sequence
- Validate the legal structure.Document ownership, governance, funding, permitted activities and whether licensing or registration applies.
- Define responsible credit policy.Set eligibility, affordability assessment, approval limits, pricing, guarantor or security rules and exceptions.
- Design the account lifecycle.Map application, approval, disbursement, schedule, receipt, arrears, rescheduling, settlement and closure.
- Build controls before volume.Separate approval, cash handling and reconciliation duties. Define access permissions and audit review.
- Pilot and measure.Start with controlled volumes and review collection rate, arrears ageing, repeat borrowing, complaints and unit economics.
Microfinance portfolio calculator
Use this planning tool to test a scenario. Results are estimates and exclude taxes, statutory charges, late fees, declining-balance effects and business-specific costs.
Indicative flat-rate calculation only. Validate pricing, affordability, disclosures and regulatory treatment independently.
Controls that save time as the portfolio grows
One customer record
Keep identification, contacts, accounts, documents and communication history connected.
Schedule accuracy
Generate consistent installments and retain the contractual schedule alongside actual payments.
Receipt trail
Record who collected what, when and against which account, then reconcile daily.
Early arrears action
Use ageing and due lists to prioritise follow-up before missed payments compound.
Move from planning to controlled operations
LendFlow helps microfinance teams manage customers, accounts, schedules, collections and arrears in one traceable workflow. It supports the operation; it does not provide a licence or replace professional compliance advice.
Frequently asked questions
Do all lenders need a microfinance licence?
The Microfinance Act definition includes accepting deposits together with providing financial accommodation or other financial services. CBSL states that moneylending without accepting deposits is not mandated to obtain a licence under that Act, but other laws and approvals may still apply. Obtain professional legal advice for your model.
What records should a new operation maintain?
Maintain customer identification, affordability and approval records, agreements, repayment schedules, receipts, balances, arrears actions, complaints, user activity and reconciliations.
What does the calculator estimate?
It models installment, total repayment, finance income and portfolio cash flow from your inputs. It is a planning estimate, not a quotation or compliance assessment.