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The objective of the study is to assess the efficiency of different approaches which have emerged in the recent years through comparing the transaction costs of lending both at the banks' level as well as from the borrower perspective. The study was conducted in three states representing different regions in the country, viz., Rajasthan, Tamil Nadu and West Bengal. The transaction costs were quantified based on primary data collected from the respondents across the chain of credit delivery for rural women. Time and cost allocation method was used to estimate the cost components in the loan transaction. Major data inputs used in the study were the financial statements of bank branches, NGO, salary and allowances of each person involved, average loan and deposit statistics,...