Eligibility Norms Most of the categories of registered entities including Societies/ Trusts/ Companies/ NBFCs/ Banks as well as national/ state level institutions set up exclusively for providing financial assistance to vulnerable/ underprivileged sections of our society have been made eligible to act as our financial intermediary. The main eligibility norms are as follows :- The MFI has been in existence for at least five years and /or it has a demonstrated track record of running a successful micro-credit programme at least for the last three years. Any new MFI, desirous of initiating a micro credit programme may also be considered for assistance if it has been promoted and managed by experienced micro finance professionals with experience of at least three years in micro credit. The condition for previous track record of micro finance may be relaxed in case of NBFCs desirous of entering in this field by adding new products or modifying existing products catering specifically to the economically weaker sections of society. However, such relaxation would be considered for only those NBFCs which have been rated AA (or equivalent) by mainstream rating agencies such as CRISIL / CARE / ICRA etc. and have been duly registered with RBI. Its micro finance programme is generally oriented towards poverty reduction and majority of its clientele are poor, more so women; The MFI has achieved minimum outreach of 3000 poor members (through individual lending / SHGs / partner NGOs or MFIs) or demonstrates the capability to reach this scale within a period of next twelve months or so. (Variations in this regard may be considered depending on the merit of such cases. The above criterion may, however, not be insisted upon in respect of such NBFCs as indicated at Sr. No. (a) above); It should choose clients irrespective of class, creed and religion and its activities should be secular in nature; It maintains a satisfactory and transparent accounting, MIS and internal audit system or is willing to adopt such practices with SIDBI assistance; It has a relatively low risk portfolio or has a definite plan to further improve its recovery performance; It has its accounts audited by an external auditor on annual basis or agrees to do so immediately after the loan is sanctioned by SIDBI; It has established or agrees to establish within a period of one year or so, after the loan is sanctioned, a separate system of accounts and monitoring for its micro finance operations; It is moving on a clear and credible path to operational and financial self-sufficiency; It has plans to broad-base its resource base further; It possesses competent and adequate staff for proper appraisal and intensive supervision.