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

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.