Study: MFI loans do little to lift the incomes of poor Cambodian families
A study by Cambodian researchers has found microfinance institution (MFI) loans do little to lift the incomes of poor Cambodian families.
The study, released last month by the international research consortium Partnership for Economic Policy, surveyed families in 11 villages and found little difference between the incomes of people who had taken out MFI loans and those who had not.
“On off-farm self-employment income, there is no borrowing effect for poor households, specifically those at 50th or below quintile of the self-employment income distribution,” the study found. “This partially indicates challenges in nudging poor families to start non-farm activities with the small loans.”