Grading of Micro Finance Institutions (MFIs)


SMERA's Microfinance Institution (MFI) gradings are an independent, third party comprehensive assessment of risks involved in the MFI and its resultant social impact. Besides evaluating capacity assessment and creditworthiness of MFIs, gradings also assess operational track record, promoters & management profile, operational and financial performance, asset quality, political risk, systems and processes of a MFI.

SMERA has executed grading assignments for more than 100 MFIs which includes all constitutions such as NBFC-MFIs, NBFCs, Section 8 Company, Societies, NGO-MFI, Trusts, etc. SMERA has been the preferred rating agency for MFI grading for leading public sector banks including Small Industries Development Bank of India (SIDBI). SMERAs MFI grading has wide acceptance from leading banks such as SIDBI, State Bank of India (SBI), Punjab National Bank (PNB), Industrial Development Bank of India (IDBI). SMERA has been working closely with SIDBI and Micro Units Development and Refinance Agency Ltd. (MUDRA) in the MFI space and therefore understands this sector and its requirements very well.


Code of Conduct Assessment (COCA)

The Code of Conduct Assessment of MFI evaluates its adherence to various code of conduct parameters as laid down by Small Industries Development Bank of India (SIDBI). The study examines and comments upon the common minimum indicators such as:

  • Sensitive Indicators
  • Integrity and Ethical Behaviour
  • Transparency
  • Client Protection
  • Governance
  • Recruitment
  • Client Education
  • Feedback and Grievance Redressal
  • Data Sharing
  • Compliance Status of MFI vis-a-vis the latest RBI Guidelines