MFI Rating Tool

In India, SHG movement is fast expanding and emerging as the most cost effective micro credit delivery units. NGOs are turning into MFIs. Rating of MFIs will enable them to tap the commercial sources of funds. Rating services are limited and beyond the reach of small MFIs in India. Grants for rating is available only when the portfolio size of MFI is 1.11 lakh US dollars.

MICROSOP foundation has come out with a simple MFI rating tool based on GOOHAP (Governance, Outreach, Operations, Human resources, Asset quality & disclosure and Profitability and Efficiency) parameters. Our objective is to help the small MFIs develop the professional management capacity with in the MFIs and internalize the process of rating.

The tool is in the form of a checklist which, when completed will give a total score out of 100 for the specified criteria. It is targeted at Indian MFIs but could be adapted for other contexts.

Related Resources