Benefits
This scheme has been launched to provide the following benefits:
For MFIs: CRISIL is the oldest and most trusted name in credit rating in India. A MFI Grading is based on through analysis of your microfinance programme and the grading report from CRISIL therefore carries weight with donors, investors and lenders, and can help you access cost effective funds in a timely manner. The MFI would also receive a report from CRISIL, which would include rationale for the grading, summary of the performance across various parameters - Management, Institutional arrangement, Capital adequacy and asset quality, Resources, Operational Effectiveness and Scalability and Sustainability, summary of key financial and operational indicators. The report will not only be helpful in fund raising but also in identifying the weaknesses that the MFI needs to address.
For Banks: Banks can increase their on lending activities in rural and semi-urban regions. CRISIL's MFI Grading would help bankers to evaluate the functioning of the MFIs and NGO-MFIs and increase their priority sector disbursements. Most well run MFIs have very good asset quality.
