Impact Assessment of Microfinance for SIDBI Foundation for Micro Credit (SFMC) - Phase 1 Report

Can microfinance empower the poor?
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This report presents the findings of the pilot phase of the impact assessment survey undertaken by EDA rural systems. The findings suggest that microfinance reaches 25% of the poor in large villages and 13% of the poor in smaller villages. The report also finds that:

  • Borrowings and indebtness have increased;
  • Borrowings from microfinance institutions (MFIs), as a proportion of total borrowings, ranges from 33% for the very poor to 23% for the better off;
  • Lending rates of informal sources come down as a result of the presence of MFIs.

Finally the report also traces the following positive impact of microfinance on the empowerment of women:

  • Increased opportunities for savings in her own name;
  • Increased mobility within and outside the village;
  • Increased confidence pride and self respect;
  • Access to information, as well as an increased ability to bring in socially desirable changes.

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