Impact Assessment of Microfinance Programme of MFIs' on their Clients

The rationale of this study was based on understanding the impact of MFIs on the business-level, household human capital, and schooling of children of the clients. To determine the impact of small loans on business-level capital of credit-constrained clients, 15 variables are considered whereas to determine the impact of small loans on clients, four human capitals considered are - Health, Food Security and Nutrition, Family Planning and Child Education and Interaction with Financial Markets. The study concludes that microfinance has positive impact on some areas of the business level capital, household human level capital as well as on the schooling of the children of the clients. The study finds some positive impact of the MFI loan on their clients growth of business assets in Live Stock Farming, Diary Business, Grocery & Stationary Shop, Tailoring and Petty Trading, more reliance on the MFIS than local lenders, some structural improvement in their business, positive change in the profit per month, increase in business turnover, change in the business demand of the clients in terms of more number of customers or more quantum of business volume after availing loan from the MFIs.