A microfinance loan is defined as a collateral-free loan given to a household having annual household income up to ₹3,00,000. For this purpose, the household shall mean an individual family unit, i.e., husband, wife, and their unmarried children. All collateral-free loans, irrespective of end use and mode of application/processing/disbursal (either through physical or digital channels) shall be considered as microfinance loans.