Impact Assessment in Microfinance

Impact assessment in microfinance evaluates how providing small loans and financial services affects borrowers and their communities. It measures changes such as improved income, better living standards, increased employment, and social benefits resulting from microfinance activities. This process helps lenders understand whether their efforts are genuinely benefiting clients and fostering sustainable development. By systematically analyzing these outcomes, organizations can refine their strategies to maximize positive impacts and ensure responsible, effective support for low-income or underserved populations.