Impact Assessment in Microfinance Institutions

 Microfinance institutions (MFIs) face a dual challenge: staying financially stable while aiding the financially disadvantaged. It's crucial for them to show how their efforts benefit their clients economically. Impact assessment is the key to achieving this.


Yet, evaluating MFI impacts is tricky. The lack of standardized methods is a major hurdle. Also, contextual factors make it hard to establish a baseline and track MFI effects over time.

To tackle these issues, the authors propose a fresh approach to impact assessment in microfinance. They suggest a hands-on method involving clients and staff right from the start to learn and enhance operations. This approach includes qualitative methods like interviews and on-site visits, unlike the typical one-time surveys often done for donor funding.

The authors stress the importance of MFIs involving stakeholders in ongoing assessment and using new tech for data collection and analysis. By doing so, MFIs can pinpoint areas for improvement, make

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