Microfinance services are increasing the resilience of low-income customers to withstand economic shocks and reaching people without prior access to financial services, according to a social performance report based interviews with 18,000 users in 41 countries. Impact measurement firm 60 Decibels Microfinance Index found that microfinance is increasing the flow of finance to women and to vulnerable populations. Of the customers surveyed, 67% are women and 30% live below the $3.20/day World Bank Poverty line. Although microfinance has faced scrutiny due to the risk that vulnerable populations can fall behind on debt payments, the report found that three in four clients report their loan repayments are “not a problem” and they “strongly agree” to understanding their loan terms and conditions.
Our report found that the playing field is still far from level when it comes to exploring alternatives for a #microfinance loan.
— 60 Decibels (@60_decibels) June 2, 2022