Microfinance Institution (MFI) grading is an all-comprehensive assessment of financial and business performances of MFIs to provide an opinion on their capacity to carry out operations in a sustainable manner. It provides an independent expert assessment on MFI’s relative performance, benchmarked against the industries and risk management practices. It is aimed at facilitating market participants, MFIs, lenders, investors and regulators with detailed information and statistics on their operational, financial and strategic performance. MFI grading thus is an important tool for business and investment decisions.
Independent third-party opinion
Provides unbiased rating to MFIs, enhances credibility, and also helps adopt good governance policies for sustainability.
Builds confidence with business partners
A good rating provides comfort to lenders, including bankers, financial institutions, NBFCs and collaborators to partner with the related MFIs.
This helps the rated entity to identify areas of improvement and plan for corrective measures.