International Network of Alternative Financial Institutions

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Other Secretariat > NAFI Asia > Policies> Thirteen Charters for Microfinance


  1. Microfinance institutions will focus on addressing large-scale poverty, reaching the most number of poor people and communities
  2. Microfinance institutions will be demand driven, no longer supply driven, making the needs of clients central to the development of products and services. The clients will be the most valued stakeholders of the industry.
  3. Microfinance institutions will become efficient in their operations, reducing the transaction costs to the poor, while recovering the full costs of operations.
  4. Microfinance industry will promote diverse models for service delivery.
  5. Microfinance initiatives will contribute to building vibrant local economies.
  6. Microfinance institutions will mobilize savings of the poor and channel it back for the poor’s own development.
  7. Microfinance institutions will operate at new frontiers facilitated by research and development, leading to innovations in products and services in:
    1. Social security - pension plans, life and health insurance, etc.
    2. Debt swaps (portfolio buy-outs)
    3. Risk mitigation – disasters, HIV/AIDS, etc.
    4. Financial derivatives (financial instruments that facilitate transfer of financial contracts)
  8. Microfinance institutions will operate under specified standards to achieve high levels of performance – institutional, financial, and development impact
  9. Microfinance institutions will contribute to poverty alleviation by providing financial services and asset creation.
  10. Microfinance industry will nurture networks and alliances to promote cooperation for the efficient and effective delivery of financial services.
  11. Microfinance industry will develop a pool of professionals through purposeful development of human resources.
  12. Microfinance industry will clearly establish its poverty alleviation agenda and expand it into social development work as dictated by the needs of the clients.
  13. Microfinance will forge linkages with the government and social institutions, and the private sector for broader impact.