MFI Grading
Microfinance involves providing credit, thrift, and other financial services and products to the economically underprivileged, to enable them to raise their income levels and living standards. Microfinance Institutions (MFIs) act as facilitators towards this end.
In line with its objective of helping markets function better, Crisil pioneered the concept of MFI grading and assessment services in India. We have, so far, assessed over 270 MFIs.
Crisil MFI Grading is
- Crisil's opinion on sustainability and scalability
of the rated MFI
- One-time assessment based on the information
provided by the MFI - Based on an eight-point scale - mfR1 (highest)
to mfR8 (lowest)
Crisil MFI Grading is not
- A credit rating does not indicate the credit worthiness
of the graded MFI
- A proxy for timely payment of interest and principal by,
or to, the rated MFI - A recommendation to purchase, sell, or hold any debt
instrument issued by the rated MFI - Monitored on an ongoing basis
- For use by the rated MFI to mobilise deposits/savings/
thrift/insurance funds/other funds (including equity) from
its members/clients or the general public