The seven-year longitudinal impact assessment study, which focused on key qualitative and quantitative parameters, was conducted. The study was aimed at improving the industry practices and enhancing the understanding of the processes of MFIs' interventions to the beneficiaries. The primary objective was to find out whether the targeted goal of the National Micro Finance Support Project (NMFSP) of SIDBI, i.e., "Substantial poverty alleviation and reduction in the vulnerability in India amongst the poor using micro finance services" was achieved.
Study has assessed the World Bank project outcomes and impact, role of MFI partners/ SIDBI in achieving outcomes and provided recommendations on how to improve the quality and delivery of financial and non-financial products and services offered to clients by MFIs.
The study was assigned to document the findings of Code of Conduct Assessment (COCA) of 40 MFIs for disseminating the lessons learnt therefrom. The COCA Reports were analysed using a framework built on five key pillars that are critical to implementation of code of conduct, viz., Integrating Social Value into Operations; Credit Processes and policies; Human Capital; Transparency and Fairness; and Regulatory Compliance.
The study included evaluation of the impact of IMEF funding on the MFI sector and the funded MFIs in terms of helping the MFIs achieve long term sustainability with respect to improving their financial sustainability (ability to leverage, reduce reliance on subsidised funds, raising equity, improving its profitability), improving their outreach and access to under-served areas (reduction in lending rate, increase in outreach to under-served areas etc) and also increase their operational efficiencies and hence reduce the cost of lending.