CRISIL MFI Grading
MICROFINANCE INSTITUTION (MFI) GRADING
CRISIL’s microfinance institution (MFI) Grading is a current opinion on the ability of an MFI to conduct its operations in a scalable and sustainable manner. The MFI Grading is assigned on an eight-point scale, with ‘mfR1’ being the highest, and ‘mfR8’ the lowest. The MFI Grading is a measure of the overall performance of an MFI on a broad range of parameters under CRISIL’s MICROSframework. It includes a traditional creditworthiness analysis using the CRAMEL approach, modified to be applicable to the microfinance sector. The acronym MICROS stands for Management, Institutional arrangement, Capital adequacy and asset quality, Resources and asset-liability management, Operational effectiveness, and Scalability and sustainability.