1.

Portfolio Quality: Portfolio quality measures the percentage of loans that

are being repaid on time. This KPI is important for assessing the
creditworthiness of borrowers and the overall health of the loan portfolio.
2. Loan Portfolio Growth: Loan portfolio growth measures the increase in the
size of the loan portfolio over a given period. This KPI is important for
assessing the growth potential of the MFI and its ability to meet the
financial needs of its clients.
3. Operational Self-Sufficiency: Operational self-sufficiency measures the
ability of the MFI to cover its operating expenses with its own revenues.
This KPI is important for assessing the sustainability of the MFI and its
ability to operate independently.
4. Cost-to-Income Ratio: Cost-to-income ratio measures the percentage of
total operating expenses to total operating income. This KPI is important
for assessing the efficiency of the MFI's operations and its ability to
manage costs.
5. Return on Assets (ROA): Return on assets measures the profitability of the
MFI's operations. This KPI is important for assessing the effectiveness of
the MFI in generating returns for its investors and shareholders.
6. Outreach: Outreach measures the number of clients served by the MFI and
the percentage of the target market reached. This KPI is important for
assessing the impact of the MFI on the local community and its ability to
meet the financial needs of underserved populations.
7. Liquidity: Liquidity measures the ability of the MFI to meet its financial
obligations as they become due. This KPI is important for assessing the
financial stability of the MFI and its ability to manage risk.
8. Portfolio at Risk (PAR): This metric measures the percentage of outstanding
loans that are past due by a certain number of days, typically 30, 60, or 90
days. A lower PAR indicates a healthier loan portfolio.

9. Loan Disbursement: This KPI measures the amount of loans disbursed by

the microfinance institution over a period of time, typically a quarter or a
year.
10.Loan Repayment Rate: This metric measures the percentage of loans that
are repaid on time by borrowers. A higher repayment rate indicates that
borrowers are able to repay their loans and that the microfinance
institution is managing its loan portfolio effectively.
 11.Portfolio Yield: This KPI measures the total revenue generated by the
microfinance institution from its loan portfolio, divided by the average
outstanding loan balance. A higher portfolio yield indicates that the
microfinance institution is generating more revenue from its loan portfolio.

12.Operating Expense Ratio: This metric measures the percentage of

operating expenses incurred by the microfinance institution relative to its
total assets. A lower operating expense ratio indicates that the
microfinance institution is operating efficiently.

13.Client Retention Rate: This KPI measures the percentage of clients who
continue to borrow from the microfinance institution over time. A higher
client retention rate indicates that the microfinance institution is providing
quality services and meeting the needs of its clients.

14.Social Impact: Microfinance institutions often measure their social impact

by tracking the number of borrowers who have lifted themselves out of
poverty, increased their income or improved their living standards.

The number of loans disbursed is a key performance indicator (KPI) that

measures the volume of loans that have been disbursed by a lending
organization over a given period of time. This KPI is important for assessing the
lending organization's ability to meet the financial needs of its customers and to
generate revenue from interest payments.
To track the number of loans disbursed, the lending organization should record
the number of loans disbursed during the reporting period, which could be a
week, a month, a quarter, or a year. This can be done using a loan management
system, a spreadsheet, or other data management tools.
The number of loans disbursed KPI can be used in conjunction with other KPIs,
such as loan portfolio growth, portfolio quality, and loan repayment rates, to
provide a comprehensive view of the lending organization's performance. By
tracking the number of loans disbursed over time, the lending organization can
identify trends and patterns in loan demand, and adjust its lending practices
accordingly.
For example, if the lending organization notices a decline in the number of loans
disbursed over the past few months, it may need to adjust its marketing
and outreach efforts to reach more potential borrowers. Alternatively, if the
lending organization sees an increase in the number of loans disbursed but a
decline in portfolio quality or repayment rates, it may need to adjust
its underwriting standards or collection practices.
In summary, the number of loans disbursed is an important KPI for lending
organizations, as it measures the volume of loans disbursed over a given period
of time. By tracking this KPI and using it in conjunction with other KPIs, lending
organizations can assess their performance, identify areas for improvement, and
adjust their lending practices accordingly.

Fall out rate is a key performance indicator (KPI) used by microfinance institutions

(MFIs) to measure the number of loan applications that are not approved or do
not proceed to loan disbursement. The fall out rate is calculated as the
percentage of loan applications that are not approved or do not proceed to loan
disbursement, out of the total number of loan applications received.
The fall out rate KPI is important for assessing the efficiency of the MFI's loan
approval process and identifying areas for improvement. A high fall out rate
indicates that the MFI is losing potential clients and revenue due to inefficiencies
in its loan approval process, such as lengthy application processes, strict eligibility
criteria, or inadequate customer service.
To calculate the fall out rate, the MFI should track the number of loan
applications received and the number of loan applications that are not approved
or do not proceed to loan disbursement. The fall out rate can be calculated using
the following formula:
Fall Out Rate = (Number of Loan Applications Not Approved or Not Disbursed /
Total Number of Loan Applications Received) x 100%
For example, if an MFI receives 100 loan applications and 20 of them are not
approved or do not proceed to loan disbursement, the fall out rate would be:
Fall Out Rate = (20 / 100) x 100% = 20%
Once the fall out rate is calculated, the MFI can use this KPI to identify the root
causes of fall out and develop strategies to reduce it. For example, the MFI may
consider simplifying its loan application process, relaxing its eligibility criteria, or
providing more personalized customer service to improve the loan approval
rate and reduce fall out.
In summary, fall out rate is an important KPI for MFIs, as it measures the number
of loan applications that are not approved or do not proceed to loan
disbursement. By tracking this KPI and identifying areas for improvement, MFIs
can optimize their loan approval process, reduce fall out, and increase revenue.
LikeDislikeShare

Fall out rate is a key performance indicator (KPI) used by microfinance institutions

(MFIs) to measure the number of loan applications that are not approved or do
not proceed to loan disbursement. The fall out rate is calculated as the
percentage of loan applications that are not approved or do not proceed to loan
disbursement, out of the total number of loan applications received.
The fall out rate KPI is important for assessing the efficiency of the MFI's loan
approval process and identifying areas for improvement. A high fall out rate
indicates that the MFI is losing potential clients and revenue due to inefficiencies
in its loan approval process, such as lengthy application processes, strict eligibility
criteria, or inadequate customer service.
To calculate the fall out rate, the MFI should track the number of loan
applications received and the number of loan applications that are not approved
or do not proceed to loan disbursement. The fall out rate can be calculated using
the following formula:
Fall Out Rate = (Number of Loan Applications Not Approved or Not Disbursed /
Total Number of Loan Applications Received) x 100%
For example, if an MFI receives 100 loan applications and 20 of them are not
approved or do not proceed to loan disbursement, the fall out rate would be:
Fall Out Rate = (20 / 100) x 100% = 20%
Once the fall out rate is calculated, the MFI can use this KPI to identify the root
causes of fall out and develop strategies to reduce it. For example, the MFI may
consider simplifying its loan application process, relaxing its eligibility criteria, or
providing more personalized customer service to improve the loan approval
rate and reduce fall out.
In summary, fall out rate is an important KPI for MFIs, as it measures the number
of loan applications that are not approved or do not proceed to loan
disbursement. By tracking this KPI and identifying areas for improvement, MFIs
can optimize their loan approval process, reduce fall out, and increase revenue.
number of loans disbursed according to marital status
The number of loans disbursed according to marital status is a key performance
indicator (KPI) that measures the volume of loans disbursed to borrowers based
on their marital status. This KPI can provide insights into the lending patterns of a
microfinance institution (MFI) based on the marital status of its borrowers.
To track the number of loans disbursed according to marital status, the MFI
should categorize its borrowers into different marital status groups, such as
single, married, divorced, or widowed. The MFI can then record the number of
loans disbursed to each group over a given period of time, such as a month or a
quarter.
By analyzing the data, the MFI can determine whether certain marital status
groups are more or less likely to apply for loans or to be approved for loans. For
example, the MFI may find that married borrowers are more likely to apply for
loans and have a higher loan approval rate than single borrowers. This
information can be used to adjust lending practices and marketing strategies to
better target specific borrower segments.
In addition to tracking the number of loans disbursed according to marital status,
the MFI may also want to track other KPIs, such as loan portfolio
quality, repayment rates, and profitability, for each marital status group. This can
provide a more comprehensive view of the lending patterns and performance of
the MFI based on borrower characteristics.
Overall, the number of loans disbursed according to marital status is an
important KPI for MFIs, as it can provide insights into the lending patterns of
different borrower segments. By tracking this KPI and analyzing the data, MFIs
can adjust their lending practices and marketing strategies to better target
specific borrower segments, improve loan approval rates, and increase revenue.

The number of loans disbursed according to marital status is a key performance indicator (KPI) that
measures the volume of loans disbursed to borrowers based on their marital status. This KPI can provide
insights into the lending patterns of a microfinance institution (MFI) based on the marital status of its
borrowers.

To track the number of loans disbursed according to marital status, the MFI should categorize its
borrowers into different marital status groups, such as single, married, divorced, or widowed. The MFI
can then record the number of loans disbursed to each group over a given period of time, such as a
month or a quarter.

By analyzing the data, the MFI can determine whether certain marital status groups are more or less
likely to apply for loans or to be approved for loans. For example, the MFI may find that married
borrowers are more likely to apply for loans and have a higher loan approval rate than single borrowers.
This information can be used to adjust lending practices and marketing strategies to better target
specific borrower segments.

In addition to tracking the number of loans disbursed according to marital status, the MFI may also want
to track other KPIs, such as loan portfolio quality, repayment rates, and profitability, for each marital
status group. This can provide a more comprehensive view of the lending patterns and performance of
the MFI based on borrower characteristics.

Overall, the number of loans disbursed according to marital status is an important KPI for MFIs, as it can
provide insights into the lending patterns of different borrower segments. By tracking this KPI and
analyzing the data, MFIs can adjust their lending practices and marketing strategies to better target
specific borrower segments, improve loan approval rates, and increase revenue.