Is a change in clients’ income the host indicator of the impact of microfinance?


  • Most client impact assessment studies focus on income generation through microcredit,

  • Enhanced income is, however, only one of the potential welfare impacts from enhanced access to financial services, and not always the main purpose of borrowing.


  • Few studies assess improvements in clients’ financial management, which is the main justification of microfinance.


  • Evaluations of microfinance programs should evaluate both the client-service relationship and the financial performance of the MFI.