  Evolution of Science and Engineering has led to the growth of several
commercial applications. The wide spread implementation of commercial based
applications has in turn directed the emergence of advanced technologies such
as cloud computing. India has well proven itself as a potential hub for
advanced technologies including cloud based industrial market. Microfinance
system has emerged out as a panacea to Indian economy since the population
encompasses of people who come under poverty and below poverty index. However,
one of the key challenges in successful operation of microfinance system in
India has given rise to integration of financial services using sophisticated
cloud computing model. This paper, therefore propose a fundamental cloud-based
microfinance model in order to reduce high transaction risks involved during
microfinance operations in an inexpensive and efficient manner.
