Within the scope of the Informal Livelihoods Advancement Activity (Iqlaa), Expectation State is seeking suppliers to provide professional consulting services to conduct a comprehensive analysis of the Pricing Policies, Structures and Modalities of Microfinance Institutions in Jordan.

The assignment aims to comprehensively analyze the microfinance sector in Jordan, focusing on MFIs and their impact on micro, small enterprises (MSEs). The objectives include understanding the pricing policies, strategies, and modalities of MFIs to shed light on challenges and opportunities within the sector. The study will assess the alignment of pricing strategies with consumer protection principles and regulatory requirements, as well as explore the impact of these strategies on MSEs’ accessibility, affordability, and transparency.
Key tasks include analyzing the cost structures of MFIs, including operational costs, funding sources, and service delivery efficiency. This involves evaluating staffing, technology, and administrative expenses, as well as assessing the impact of funding sources, subsidies, and equity costs on pricing. The study will also examine the efficiency of loan processing, customer service, and risk management processes, and analyze the relationship between pricing decisions and over-indebtedness among borrowers.
Additionally, the study will analyze the pricing policies and strategies employed by MFIs, considering structures, regulatory impacts, and portfolio yield. It will also assess market competitiveness, concentration, outreach efforts, and compliance with regulatory requirements. A comparative analysis will be conducted to benchmark MFIs against industry peers and best practices, evaluating key indicators such as operating expenses, funding expenses, and portfolio yield. Trend analysis will also be performed to identify areas of improvement or inefficiency, along with an evaluation of historical effective interest rates imposed by MFIs.

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