Underwriting Framework

IFMR Capital has set strong evaluative parameters for ensuring that the transactions it initiates meet the needs of MFIs and other entities it works for, as well as the investors in the debt capital market.

Every transaction is preceded by stringent due diligence and an analysis of the Originator by IFMR Capital’s origination team. The objective is to ascertain that the Originator has:

  • A management that is strong, motivated, experienced, and reliable
  • Systems, including micro-borrower information systems, which are sound, relevant, comprehensive, transparent and watertight
  • Strategic, clear, prudent and ethical policies and practices
  • Excellent financial performance and high quality of loan origination and servicing vis-a-vis industry standards
  • The strength to face unexpected ‘stress’ conditions
  • This examination is built into a quantitative Originator scorecard and a qualitative analysis to aid in the identification of high-quality Originators.

It is our belief that such underwriting, built by experts having a deep understanding of the Microfinance sector, the SME Finance sector, the Affordable Housing Finance sector, the Vehicle Finance sector, and the Agri Finance sector as also of capital markets, will result in these being viewed as strong asset classes.

Underwriting Guidelines for Small-Enterprise Finance
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Underwriting Guidelines for Affordable Housing Finance
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Underwriting Guidelines for Microfinance
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