SIDBI Foundation for Micro Credit

A. Sectoral Studies

SI. No.

Name of the study


Brief about the Study


Interest rate Study of assisted MFIs


The study was assigned to carry out a detailed analysis of interest rates, costs and margins and product pricing of SIDBI assisted microfinance institutions.


Study on Responsible Microfinance


The study was assigned with focus on impact of ‘responsible lending practices’ adopted by MFIs in their functioning. Apart from studying the MFI practices, the study has also identified broad gaps and suggested remedial action plan to bridge those gaps. The Study has documented the complement of credit plus activities being undertaken by MFIs and laid out a road map for the future.


Viability Gap Study


The Report highlighted the challenges in terms of viability and sustainability of operations of MFIs, viz., cost of source of funds from banks and equity investments, the cost of operations and margins capped by regulation resulting in reduced sustainability of operations, skilled manpower and risk management frameworks and legal structure of the microfinance institutions (MFIs). 


Study on Human Resource management in MFIs


The assignment was for preparing a Report on Human Resource Management Practices in Indian MFIs. In the current scenario when emphasis is laid on Client Protection Principles and Responsible Lending Practices, it is essential for the MFIs to have a suitably sensitised and trained HR. 


Performance of Model for lending to Individuals in Microfinance Sector


The objectives of the study was to understand:

  • the needs and reason for preference of individual/joint liability loan product by clients who have taken individual liability loans.
  • the household consumption, income and other aspects of clients who are in the third or fourth cycle of joint liability loans. Clients in the third or fourth cycle of their loans are considered mature clients and eligible to be offered individual liability loan products by MFIs.
  • the reasons for non-take-up of individual liability loan products by customers who have been offered the same.
  • the finance and borrowing needs and sources of small entrepreneurs who have never borrowed from an MFI.
  • To understand the reasons for default among individual liability loan customers.
  • the MFI’s perspective in terms of introduction and growth of IL products as well as barriers faced.



Cash Flow estimation for Responsible Lending


The objectives of the study was to develop a robust cash flow analysis tool to help in estimating an optimal loan: income ratio for the client/client household. The study also suggested on the tools and procedures that can assist in determining the credit eligibility of the client and scope to have training for client on financial management.


Study on adoption of Cash Lite Models among MFIs in India


The objective the study was conducted to understand and assess the strategic models adopted/piloted by various players to allow for cash-lite processes/operations. The study also highlight the pros and cons of various cash-lite models and suggested measures to accelerate adoption of cash-lite operations among MFIs in India.