Microfinance is generally seen as a way to fix credit markets and unleash the productive capacities of poor people who … are dependent on self-employment. The microfinance sector has grown quickly since the 1990s, paving the way for other …, generating a backlash against microfinance. This paper reconsiders the claims about microfinance, highlighting the diversity in …

threshold were offered a loan. Using a regression discontinuity design and credit bureau data, the study finds that the tool … increased small and medium-size enterprise loan use by up to 59 percentage points for applicants without a credit history … than the partner bank. For applicants with a credit history, the tool did not increase small and medium-size enterprise …

Self-help groups (SHGs) are the most common form of microfinance in India. The authors provide evidence that SHGs …