MFTransparency, a US-based nongovernmental organization (NGO), recently partnered with Planet Rating, a microfinance rating agency that is a member of the France-based PlaNet Finance Group, and Microfinance Institutions Network (MFIN), a trade association of microlenders in India. These partnerships aim to generate a better understanding of pricing and pricing trends in the microfinance industry by collecting and publishing data on the interest rates and fees that microfinance clients are charged.
Planet Rating will be the implementation partner for MFTransparency’s Global Transparent Pricing Initiative of data collection and pricing disclosure for various countries, starting with the seven countries of the “Africa to Price Responsibly & Educate on Interest Rates” (APR & EIR) Program: Ghana, Malawi, Mozambique, Rwanda, Tanzania, Uganda and Zambia. MFIN will collect and disclose data on the interest rates and fees charged in India.
As of January 2012, MFTransparency has collected data from about 30 countries on four continents, including 16 countries in Sub-Saharan Africa.
By Mihaela Grindeanu, Research Associate
About Microfinance Institutions Network (MFIN): The Microfinance Institutions Network (MFIN) is a trade association of 46 Indian microlenders that operate as non-banking finance companies and together reportedly account for approximately 80 percent of the Indian market. MFIN is supported by the Omidyar Network, a US-based philanthropic investment firm, and the International Finance Corporation (IFC), a member of the World Bank Group.
About Planet Rating: Planet Rating is a microfinance rating agency and member of the France-based PlaNet Finance Group. It originated the GIRAFFE methodology, which it uses to evaluate the performance and institutional risk of MFIs. This includes a 14-page report explaining the rating, a financial and operational analysis, regional and international benchmarking and a categorical rating.
About MFTransparency: MFTransparency is a US-based nongovernmental organization (NGO) that was launched in July 2008 to provide information on microcredit products and their prices. MFTransparency collects data on the interest and fees charged on microfinance loan products in order to calculate and publicize the effective interest rates charged on those loans. According to its website, 889 industry stakeholders have endorsed its efforts as of 2011. As of January 2012, MFTransparency has collected data from about 30 countries on four continents, including 16 countries in Sub-Saharan Africa.
Sources and Resources:
MFTransparency story: “MFTransparency announces Partnership with Planet Rating”, http://www.mftransparency.org/mftransparency-announces-partnership-with-planet-rating/
MFTransparency story: “MFTransparency announces Partnership with MFIN India”, http://www.mftransparency.org/mftransparency-and-mfin-india-announce-partnership/
MicroCapital.org story, April 16, 2012: “MICROCAPITAL BRIEF: Microfinance Institutions Network (MFIN) Asks Reserve Bank of India (RBI) to Assist in Recovering Loans Outstanding in Andhra Pradesh”, https://www.microcapital.org/microcapital-brief-microfinance-institutions-network-mfin-asks-reserve-bank-of-india-rbi-to-assist-in-recovering-loans-outstanding-in-andhra-pradesh/
MicroCapital.org story, October 11, 2011: “MICROCAPITAL BRIEF: MicroFinanza Rating, MicroRate, Planet Rating Sign Microfinance Rating Agency Code of Conduct, Sanjay Sinha of Micro-Credit Ratings International (M-CRIL) Criticizes Commercial Rating Agencies as “Too Liberal” with Microfinance Institutions”, https://www.microcapital.org/microcapital-brief-microfinanza-rating-microrate-planet-rating-sign-microfinance-rating-agency-code-of-conduct-sanjay-sinha-of-micro-credit-ratings-international-m-cril-criticizes-commercial-rat/
MicroCapital Universe Profile: MFTransparency, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MFTransparency
MicroCapital Universe Profile: Planet Rating, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Planet+Rating
MicroCapital Universe Profile: Microfinance Institutions Network (MFIN), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Institutions+Network+%28MFIN%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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