Difference between Nano Finance and Micro Finance



Nano Finance

Micro Finance

 Gives small emergency loans instantly

 with minimum information

Does not give small emergency loans instantly

Simple processing system

Complicated processing system


Individual loans to women only

Mostly group loans; both men and women


Interest free loan for one year. The clients decide their payment plan.                 

High interest, weekly or monthly payment  which is decided by the Micro Finance Institution.                 

Very low overhead expenses 


High overhead expenses 

Sustains mostly on grants, donations, and collected loan amount from clients    

Sustains with the earnings from the interest rate and loans from banks

Not a profit making venture 

Highly profit making venture 


The success depends on the net-working of women with trust


The success depends on the number of Self help Groups

Helping poor by anyone with minimum resources


 Helping poor by financial Institutions with big financial investment