IIBF Microfinance case studies

IIBF Microfinance · Put your knowledge to work in context.

The IIBF Microfinance credential is a certificate examination offered by the Indian Institute of Banking & Finance, an institution established in 1928 whose stated vision is "To be the premier Institute for developing and nurturing competent professionals in banking and finance field." IIBF lists certificate examinations, including those delivered under Remote Proctored mode, in published schedules on its official site, and directs candidates to apply through their login profiles on the Digital Candidate Portal. This study page is independent and is not affiliated with, endorsed by, or sponsored by IIBF. The IIBF Microfinance case studies are 5 cases and about 4,751 words.

Pricing Under Political Pressure at an NBFC-MFI

Sahaj Microfinance, an NBFC-MFI with an AUM of ₹480 crore across 3.1 lakh borrowers in four districts of eastern Uttar Pradesh, charges an all-in effective rate of 23.5%. Its cost of funds is 10.5%, operating expense ratio 8.9% and credit cost 1.9%, producing an ROA of roughly 2.2% before tax.

923 words, about 5 min 2

Designing a Crop-Linked Loan in a Rain-Fed Block

Dharashiv Agro Finance, an NBFC-MFI, proposes a 'Kisan Mitra' product for 1,850 small farmers in two rain-fed blocks: ₹60,000 per borrower at 26% per annum, with a single repayment of principal and interest at the end of nine months, after harvest. The loan officer argues that farmers receive cash only once a year and that forcing monthly instalments will push them to moneylenders charging 5% a month.

947 words, about 5 min 3

Recovery Conduct and Legal Status of a Section 8 MFI

Nirman Samruddhi Foundation, a Section 8 company, has 78,000 borrowers and an AUM of ₹95 crore across 14 branches in Madhya Pradesh. It is not registered with RBI as an NBFC and is not registered under the state money lending enactment, on the advice of its counsel that a not-for-profit organisation is not a 'money lender'.

1,012 words, about 5 min 4

Closing a Priority Sector Shortfall in an Over-Served District

A mid-sized private bank's lead district office reports a ₹120 crore shortfall against its priority sector target for one district. The district has 2.1 lakh households; 61% have no formal credit account.

867 words, about 4 min 5

PAR Spike, Ghost Collections and a Star Officer

At the end of Q2, the Kalmeshwar branch of an NBFC-MFI reports 3,900 active borrowers, PAR-30 of 6.4% (up from 2.1% in Q1), PAR-60 of 2.9%, and collection efficiency of 97.8% - the best in the region. Internal audit finds that credit officer R, who manages 512 borrowers across 41 joint-liability groups (branch average: 380 borrowers), has (i) collected ₹2.4 lakh from 11 people who are not borrowers and shown it against 11 delinquent accounts; (ii) reclassified 9 defaulted loans as fresh loans in the MIS to reset ageing; and (iii) himself signed as witness on 6 loan documents.

1,002 words, about 5 min