The programme titled National Micro Finance Support Project (MFSP) will utilise 14% of the grant for policy advocacy, research and product innovation in the small-scale sector. These funds of about Rs 19.02 crore will be used to provide support to micro-finance networks for information dissemination as well as for the impact assessment programme of the micro-credit programme of Sidbi Foundation.
Six percent of the funds, which is equivalent to Rs 8.15 crore, will go towards capacity building of Sidbi. Another 5% (Rs 6.8 crore) will be used for capacity building of formal financial insitutions (FFIs), commercial banks, co-operative banks and regional rural banks. This also includes a provision for engaging national and international consultants for the partner FFIs. There are two micro-credit training insitutes at Ahmedabad and Madurai which will be given about 10% for demand driven courses run by them. Thus, Sidbi will spend about Rs 13.6 crore for micro-credit training.