Assessing the performance of microfinance lending process using AHP-fuzzy comprehensive evaluation method

Abstract

Many studies focus on microfinance institutions (MFIs) profitability, client retention, and default rate. Yet, they do not pay much attention to the way in which microfinance (MF) can improve the living conditions of the poor and satisfy their needs. This article presents a new way to assess the performance of MF lending process based on analytic hierarchy process (AHP)-fuzzy comprehensive evaluation method. The aim is to suggest some solutions to improve the performance of processes that create and support MF products and services. Not only should this study contribute to the research literature but it can also help the MFIs to control the risk derived from their operations and increase client satisfaction. Thus, MFIs can enhance their performance and their role in reducing poverty.