MFIs often operate in areas which lack basic infrastructure pertaining to payment systems and microfinance clients rarely have bank accounts. Also, microfinance operations are human intensive and MFIs are susceptible to the risk that the loan disbursed would not reach the intended clients. M2i’s Loan Portfolio Audit (LPA) is a comprehensive exercise that –
- Assesses compliance between MFI’s stated credit policy and operations
- On a sample basis, cross-checks MFI records with those of clients, at the clients location
- Checks accuracy of the internal reports generated by the MFI
- Checks accuracy of the reports and documents submitted to the investors and the lenders
- Confirms physical identity of the clients on a sample basis
- Analyzes and reports the key risks that the MFI faces
We have conducted Loan Portfolio Audits of MFIs in India for various banks including SIDBI, AXIS Bank, Yes Bank, HDFC Bank, ICICI Bank and other financial institutions. M2i has also conducted Loan Portfolio Audit in Afghanistan for MISFA.