Study on Responsible Microfinance Practices by Microfinance Institutions (MFIs) in India
SIDBI commissioned MicroSave to assess “As-is” status of the microfinance sector vis-à-vis responsible lending practices, impact of these initiatives on microfinance operations and to lay out key policy recommendations that will further strengthen responsible lending practices in the microfinance sector in India. MicroSave undertook the following activities:
Phase I: MFI selection for secondary research; design of assessment and analytical framework
Phase II: Secondary research and assessment of 36 sample MFIs as per assessment framework; secondary research on responsible finance international best practices
Phase III: Primary research with 10 MFIs and key stakeholders of the sector to gather their thoughts on the impact of RF practices on the sector and their clients. Also gathered were recommendations from stakeholders and MFIs on the way forward for the sector in implementing RF practices.
Phase IV: Policy workshop (to be conducted) with key stakeholders to refine the recommendations to improve responsible lending practices in Indian microfinance and develop an action plan.