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Endnotes
1 By Annie Duflo, Anvesha Khandelwal, Aparna Krishnan, Amy Mowl, Jyoti Prasad Mukhopadhyay, and
Rati Tripathi, The authors would have liked to have covered ongoing research outside the CMF, but
were unable to do so for lack of time. More information on CMF is contained in www.ifmr.ac.in/cmf
2 This paragraph is based Duflo and Duflo (2006).
3 The impact assessments done by EDA Rural System (EDA 2005) and ASA- Grama Vidiyal: Microfinance
Impact Reports (2003 and 2004) focused on these aspects.
4 Some recent studies have tried to bypass this difficulty by comparing new entrants with old entrants.
This has the advantage of being economical and easy to implement. However the set of old clients may
not be same as the set of new clients. Moreover the MFI might have undergone institutional changes as
a result of internal learning so that the old and new clients may not have been subject to the same
policies. See (SEEP) (Undated).
5 Principal Researchers: Profs Abhijit Banerjee and Esther Duflo (MIT); CMF Research Associate: Keerthi
Kumar and Aparna Dasika.
6 Spandana is an MFI operating mainly in Andhra Pradesh with more than eight lakhs clients. It offers
group loans, individual loans with daily repayment and consumption loans.
7 Of 120 slums where Spandana was planning to expand its microcredit programme, 60 slums were
randomly chosen before the programme started and are now benefiting from the microcredit programme,
while credit will be introduced in the 60 other slums only later.
8 Only results from the baseline survey are now available.
9 The main activities were tailoring, general store or Kirana store, telephone booth, selling
vegetables etc.
10 Average monthly sales proceeds were Rs 13,000, while average profit was Rs 3,040 per month. Only 2%
of businesses had a partner, and only 10% had an employee. 20% used no productive assets whatsoever.
11 The average size of the loans was Rs 20,000 (and the median size Rs 10,000)
12 This was before Spandana penetration
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