Thesis (MTh (Practical Theology and Missiology))--University of Stellenbosch, 2011. / ENGLISH ABSTRACT: This study tries to examine the impact of microcredit on the lives of poor people. There are different views on microcredit as a powerful development tool regarding its success in developing the lives of the poor and, sometimes, these views are contradictory. However, poverty is a global issue; it is a problem that even the wealthiest nation is experiencing. In this scenario, a country like Zambia is facing a great challenge to alleviate or reduce poverty, because poverty is the cause of many problems, such as suicides, illiteracy, unemployment and diseases like depression, stress, etc. In order to control these diseases, poverty must firstly be controlled. At government, church and also at international level, many strategies are implemented daily to control poverty. Therefore, the purpose of this study is to observe what role microcredit is playing in poverty alleviation in Zambia. Zambia is a country that ranks below average on most social indicators within Central Africa. Its economic inequalities are enormous leaving indigenous Lusaka rural‘s population far behind. With this point of departure, this research aims to measure the impact of microcredit on indigenous poor people in a village situated in the poorest region of Zambia. Its purpose is to capture how the economic capacity has changed over time due to microcredits from a microfinance institution. In order to obtain a multi-dimensional picture of their situation, four additional related aspects are examined: the political capacity, social and human capital, and gender equality. In addition, a correlation analysis of the inter-relation between these aspects and the church is done. The results are two-sided and demonstrate no general correlation between time and economic capacity, nor among the four other aspects. The variables that increase with time are: the current construction of their houses, the quality of their clothes, and their political capacity. However, the reliability of the data is somewhat questionable. An ana-lysis of these contributes to the ongoing discussion on how to perform impact studies on microfinance institutions, as well as how different aspects influence each other. / AFRIKAANSE OPSOMMING: Hierdie studie poog om die impak van mikrokrediet op die lewens van arm mense te ondersoek. Daar is verskeie menings oor mikrokrediet as 'n magtige ontwikkelings-meganisme met betrekking tot die sukses daarvan in die ontwikkeling van armes se lewens, en hierdie menings is soms teenstrydig. Maar, armoede is 'n globale verskynsel; dit is 'n probleem wat selfs die rykste nasies ondervind. Hierdie senario, 'n land soos Zambië, ondervind tans 'n groot uitdaging om armoede te verlig of te verminder, want armoede veroorsaak baie probleme soos selfmoorde, ongeletterdheid, werkloosheid en siektes soos depressie, spanning, ens. Om hierdie siektes te beheer, moet armoede vir eers beheer word. Op regerings-, kerklike en ook internasionale vlak, word baie strategieë daagliks geïmplementeer om armoede te beheer. Daarom is die doel van hierdie studie om vas te stel watter rol mikrokrediet tans speel in armoede-verligting in Zambië. Zambië is 'n land wat laer as die gemiddelde beskou word op meeste van die sosiale aanwysers binne Sentraal-Afrika. Sy ekonomiese ongelykhede is ontsettend groot, wat die inheemse plattelandse Lusaka se bevolking ver agterlaat. Met hierdie vertrekpunt, beoog hierdie navorsing om die impak te meet van mikrokrediet op inheemse arm mense in 'n dorpie wat in die armste streek van Zambië geleë is. Die doel is om vas te stel hoe die ekonomiese kapasiteit verander het met verloop van tyd, te danke aan mikrokrediete van 'n mikrofinansiële inrigting. Om 'n multi-dimensionele beeld van hul situasie te verkry, word vier addisionele verwante aspekte ondersoek: die politieke kapasiteit, sosiale asook menslike kapitaal, en geslagsgelykheid. Daarby is 'n korrelasie-analise van die onderlinge verhouding tussen hierdie aspekte en die kerk gedoen. Die resultate is twee-sydig en toon geen algemene korrelasie tussen tyd en ekonomiese kapasiteit, of onder die vier ander aspekte nie. Die veranderlikes wat toeneem oor tyd is: die huidige konstruksie van hul huise, die kwaliteit van hul klere en hul politieke kapasiteit. Maar, die betroubaarheid van die data is in 'n mate twyfelagtig. 'n Analise hiervan dra by tot die deurlopende gesprek oor hoe om impakstudies op mikrofinansiële inrigtings te doen, en ook hoe verskillende aspekte mekaar beïnvloed.

La microfinance en Egypte comme en Tunisie répond depuis plusieurs décennies à un besoin permanent des populations qui sont exclues du système financier formel. Ces populations n’ont d’autres sources de financement que celles mises à disposition par les institutions de microfinance. Ces financements sont majoritairement axés sur le microcrédit, l’épargne, et les produits d’assurance. Notre recherche interroge l’influence et la capacité que la microfinance exerce dans les deux pays notamment pour leur participation à un autre mode de développement, local et socialement soutenable. Pour répondre à ces interrogations nous avons adopté une méthodologie mixte (recherche documentaire, interviews et enquêtes par questionnaires).Cette méthodologie a permis de mieux éclairer le problème de la microfinance à travers une typologie des institutions impliquées et de la capacité de ces institutions à faire face à la demande des populations dans les zones périurbaines et rurales de la Tunisie et de l’Egypte. Notre principale contribution théorique est de mettre en évidence que cet ensemble d’éléments constitutifs permet une analyse de l’impact de la microfinance sur le développement dans ces deux pays. Dans quelle mesure a-t-elle permis à la population de sortir de la pauvreté, quelle est sa place dans le développement local notamment dans les zones rurales et dans la périphérie des grandes villes du Caire et de Tunis ? Telles sont les principales questions que nous avons pu traiter. / Microfinance in Egypt and in Tunisia as well has been given for decades an answer to the permanent need from populations that are excluded from the formal banking system. These populations have no other sources of finance than that of microfinance. These funds are mainly, microcredit, savings and insurance. Our research questions the influence and the capacity that microfinance exerts upon both countries especially on their participation to another development mode, local and socially sustainable. To address these questions we adopted a hybrid methodology (in depth documentation, interviews and surveys with questionnaires).This method has permitted to shed a better light on the microfinance issue through a typology of microfinance institutions and through their ability to meet the demand from the populations of rural and suburban areas in Tunisia and Egypt. Our main theoretical contribution is to make it clear that this whole set of elements allows an analysis about the impact of microfinance on development. To what extent does it enable the people to escape from poverty, what is its place in the local development especially in the rural and suburban areas in the large cities like Tunis and Cairo ? Here are the main questions we could deal with.

My diploma thesis is about social entrepreneurship in the banking sector. The thesis has two parts - theoretical and practical. In the theoretical part I examine the social entrepreneurship in general, i.e meaning of altruism in entrepreneurship. The ambit of my interest is interesting also because for-profit and non-for-profit organizations operate or operated on the same market. The practical part contains several case studies of "social banking" institutions. Concretely, I chose charitable banks in Italy and Spain emerging in 15th century, furthermore kampeličky and Raiffeisen cooperatives, microcredit and P-to-P lending. I try to answer the question whether the "social banking" is a meaningful concept and whether we can find in history some development leading to the current form of microcredit.

The purpose of the thesis is to study microcredit regulation in India, how it is designed, and how it affects the borrowers. Since microfinance institutes (MFIs) often claim that microcredit is a tool for empowering women, the impact on women has been studied in particular in the thesis. The success and the failures from using different models and legal structures for microcredit can be used to improve credit regulation in both developing and developed jurisdictions. The research questions that are studied are: What impact does microcredit regulation have on borrowers? How does microcredit impact women in particular? How can microcredit regulation improve the well-being of borrowers? In order to fulfil the aim of the thesis, a field study in India has been carried out to interview borrowers of microcredit, employees at a MFI and other experts on the field. To understand the impact that microcredit has had on the borrowers, the Capabilities Approach is applied on results from interviews with borrowers. Microcredit provides small loans to people in developing countries. It has become popular all over the world as a tool to alleviate poverty and empower women, especially in India. The sector was largely unregulated in India until the event of the Andhra Pradesh crisis in 2010. Leading up to the crisis, many microfinance institutes scaled up quickly and several entities shifted from not-for-profit into for-profit entities as financial institutions and commercial banks entered the sector. The methods used by the institutes, along with the non-existing legal support, led to borrowers defaulting and becoming over-indebted. Reports in the media emerged of some borrowers committing suicide as an effect of the crisis. The public reputation of microcredit was for the first time tarnished. After the crisis the sector begun to regulate the for-profit microfinance institutes that had caused the crisis. Today, they are fully regulated and supervised by the Reserve Bank of India (RBI). Other entities have remained unregulated, despite attempts to regulate them. The study has shown that microcredit has improved the well-being of most of the borrowers in terms of change in status, social participation, and increase in income. When using the Capabilities Approach microcredit can enhance one’s capabilities and freedom if the microcredit regulations aim is to improve the well-being. In terms of how microcredit impacts women specially, the interviews show that women are not always the primary user of the loan, she is often used as an instrument through which the husband gets the loan. Microcredit has the potential for positively impacting female well-being, but it does not presently live up to the notion of empowering women through entrepreneurship. To conclude, borrowers’ well-being has improved through the introduction of microcredit, but there is no clear correlation between microcredit and improvements in well-being. Well-being cannot be achieved if there is no regulation in place which aims to prevent exploitation of MFIs. The event of Andhra Pradesh crisis provides us with examples of how microcredit regulation can be an important tool in improving welfare and reducing harmful credit. / Syftet med uppsatsen är att studera regelverket gällande mikrolån i Indien, dels hur det är utformat och dels undersöka hur det påverkar mikrolånstagarna. Eftersom mikrolånsinstituten ofta hävdar att mikrolån kan användas som ett verktyg för att stärka kvinnor, har påverkan på kvinnorna studerats särskilt. Framgångarna och misslyckandena från att använda olika modeller och regelverk för mikrolån kan användas för att förbättra kreditreglering i både utvecklingsländer och utvecklade länder. Frågeställningarna som studeras är: Vilka effekter har regleringen för mikrolån på låntagarna? Hur påverkas kvinnor av mikrolån i synnerhet? Hur kan regleringen för mikrolån förbättra låntagarnas välbefinnande? För att uppfylla syftet med uppsatsen har en fältstudie i Indien genomförts där intervjuer har gjorts med framförallt låntagare, men även anställda vid ett mikrolånsinstitut och andra experter på området. För att förstå hur låntagarna påverkas av mikrolån har Capabilities Approach tillämpats på resultaten från intervjuerna med låntagarna. Mikrolån innebär små lån till människor i utvecklingsländer. Mikrolånen har blivit populära över hela världen som ett verktyg för att minska fattigdom och stärka kvinnor, särskilt i Indien. Under lång tid var sektorn nästan oreglerad i Indien fram till Andhra Pradesh-krisen 2010. Under tiden som ledde upp till krisen växte många mikrolånsinstitut snabbt och många institut skiftade från icke-vinstdrivande till vinstdrivande företag allteftersom finansinstitut och banker intog sektorn. De metoder som användes av instituten tillsammans med den näst intill obefintliga regleringen ledde till att låntagare inte kunde betala sina skulder allteftersom de förföll till betalning. De blev överskuldsatta och i rapporter i media framkom det att vissa låntagare hade begått självmord som en effekt av krisen. Mikrolånsinstitutens offentligt rykte blev för första gången förstört. Efter krisen började sektorn reglera de mikrolånsinstitut som var orsaken till krisen och idag är de helt och hållet reglerade och övervakade av the Reserve Bank of India (RBI). Övriga institut förblev i stort sett oreglerade trots försök att reglera dem. Studien har visat att mikrolån har förbättrat de flesta låntagarnas välbefinnande genom förbättringar i status, socialt deltagande, och ökad inkomst. Genom att använda Capabilities Approach kan mikrolån öka en persons förmågor och frihet om regelverket för mikrolån syftar till att förbättra låntagarnas välmående. När det gäller hur mikrokredit påverkat kvinnor specifikt visade intervjuerna att kvinnan inte alltid är den verkliga låntagaren, ofta används hon som ett instrument där mannen tar del av lånet. Mikrolån kan potentiellt ha en positiv påverkan på kvinnors välbefinnande, men det kan inte leva upp till föreställningen om att stärka kvinnor genom entreprenörskap. Sammanfattningsvis kan studien visa att låntagarnas välmående har förbättrats genom mikrolån, men det finns ingen automatisk koppling mellan mikrokrediter och förbättringar i låntagarnas välbefinnande. Ökat välbefinnande går inte att uppnå om det inte finns ett regelverk som syftar till att motverka exploatering av mikrolånsinstitut. Krisen i Andhra Pradesh kan ge ett exempel på hur regleringen för mikrolån kan användas som ett verktyg för att förbättra välfärd och minska skadlig kreditgivning.

O Microcrédito ganhou notoriedade a partir da experiência do Banco Grameen, em Bangladesh, nos anos 70. A expansão e o crescimento das microfinanças, nas últimas décadas, atraiu a atenção de pesquisadores e governos, tornando-se um instrumento de políticas públicas para o combate à pobreza, e trouxe com elas a necessidade de maior transparência e de padronização das informações sobre o desempenho financeiro para alcançar dois objetivos: a atração de recursos financeiros de organismos internacionais de auxílio e fomento, bancos de desenvolvimento e investidores, para funding das operações; permitir a comparação dos resultados Instituições Microfinanceiras. No Brasil, o Microcrédito surgiu nos anos 70, e ganhou maior impulso no final da década de 90, quando se criou a regulamentação específica para o setor. Este trabalho teve por objetivo definir um modelo de medição de performance para as instituições financeiras não bancárias autorizadas a trabalhar neste segmento, as Sociedades de Crédito ao Microempreendedor, avaliar seu desempenho quanto à qualidade dos ativos, eficiência operacional, gestão financeira e lucratividade, no período de dezembro de 2000 a dezembro de 2004, e compará-lo ao de Instituições Microfinanceiras atuando na América Latina. Partindo de uma extensa pesquisa bibliográfica, identificou indicadores de performance usados internacionalmente, cujos conceitos foram amplamente discutidos e consensados. Eles foram adaptados ao Plano Contábil das Instituições Financeiras e aplicados aos dados de balanço e demonstrativo de resultados fornecidos pelo Banco Central do Brasil, permitindo traçar um painel da evolução do segmento de microcrédito atendido pelas Sociedades de Credito ao Microempreendedor. A avaliação do comportamento dos indicadores indicou um segmento em desenvolvimento; um processo de crescimento baseado em capital próprio, com baixa utilização de recursos de terceiros; resultados financeiros elevados que, quando combinados com despesas altas, geram resultados modestos. A comparação com as operações em outros países latino-americanos mostrou que as Sociedades de Crédito ao Microempreendedor possuem ativos de maior risco, menor eficiência operacional, nível de endividamento muito mais baixo e índices de lucratividade menos significativos que os de suas pares internacionais. Mostrou, também, que as instituições locais são muito menores e mais jovens. Para o desenvolvimento do microcrédito no Brasil, é fundamental que o governo aumente a atratividade do setor, e atue para resolver uma falha de mercado, onde as instituições privadas não estão totalmente à vontade para atuar, criando condições para a expansão das entidades privadas e para a entrada de instituições internacionais, trazendo o conhecimento e a experiência de outros mercados. / The Grameen Bank experience of lending small money to poor people, in Bangladesh, during the seventies, made microcredit famous all over the world. Microfinance growing and expansion in the last two decades attracted attention of researchers and governments, becoming a new public policy tool in order to combat poverty, and demanded more transparent and standardized performance information not only to support investment decisions for donors, development banks and investors, but also to make international benchmarking possible. In Brazil, microcredit appeared in the 1970s, but started to grow rapidly in the 1990s, when a specific legal framework was established. The present study aimed to: define a performance model for brazilian non banking finance institutions handling microcredit, Sociedades de Crédito ao Microempreendedor; create performance indicators to evaluate asset quality, operational efficiency, financial management, and profitability, over a period of 5 yeras, 2000-2004; make a benchmark with latin american microfinance institutions. A bibliographic research identified internationally adopted performance indicators, whose concepts and definitions were fully discussed and consensed. They were adapted according to the Accounting Chart for Institutions of the National Financial System, COSIF, and applied to institutions balance sheet data furnished by brazilian Central Bank, providing an overview of the microcredit segment operated by Sociedades de Crédito ao Microempreendedor. Indicators evaluation showed that brazilian microfinance instituitions operate in a development market, have low debt-equity ratios, and achieve good financial results that are offset by high expenses. The benchmark with other latin american microfinance institutions showed that brazilian ones have poorer asset quality, lower operational efficiency and debt-equity ratio, and worse financial results. They are also smaller and younger than their latin american peers. In order to incentive microcredit expansion and development, brazilian government policies must fix a market failure, that private institutions and commercial banks are not fully supportive of microcredit. This could make brazilian market more attractive for national and international institutions, bringing more investments and estimulating consulting services, which would aggregate knowledge and experience from other markets.

O desemprego é dos grandes problemas enfrentados pela sociedade moderna e, sabidamente, os microempreendimentos têm um potencial maior para gerar empregos que as grandes organizações. Um dos principais problemas enfrentados pelos microempreendimentos é a falta de recursos financeiros para implementar seus investimentos. A fim de suprir essa demanda latente, várias ONGs foram fundadas com o intuito de lhes fornecer empréstimos de pequeno valor, conhecidos por microcréditos. Dentre os desafios que as ONGs de microcrédito devem superar para se consolidar no mercado, está a busca pela auto-suficiência econômica. Por meio de um estudo de caso com dezessete organizações brasileiras associadas à ABCRED, conclui-se que há indícios que algumas técnicas e seus respectivos procedimentos têm mais relevância para que se alcance a auto-suficiência. O estudo também apresenta diversas informações sobre as ONGs de microcrédito brasileiras que participaram do estudo de caso, permitindo que se tenha uma noção das características e peculiaridades desse segmento de atividade. / Unemployment is one of the most serious problem faced by the present society and the microundertakings, well embased, own a higher potencial to generate employment if compared with large organizations. The privation of financial resoucers is one of the basic problems faced by the microundertakings, in order to implement their investiments. To supply this latent demand, several Non-Governamental Organizations were stablished to offer loan low costs named as microcredits. Among the challenges the NGO must overcome, in order to be solidified on the market, it is necessary to highlight the search for economic selfsuficiency. Using this study case containing seventeen brazilian organizations connected to ABCRED, was concluded that there are traces showing some techniques and conducts owning more pertinent structure in order to reach the self-suficiency. This study also aims at showing several information related to Brazilian Microcredit ONGs, those ones that took part into this study case, supporting us by the opportunity of obtaining characteristic conceptions and singularities from this segment.

Financial Non-Governmental Organisations (FNGOs) are regulated microfinance institutions (MFIs) that operate with the social welfare logic in the delivery of Microcredit (MC) and Entrepreneurship Training (ET) to the poor in Ghana. The provision of these two capitals (MC and ET) is aimed at supporting the poor to create sustainable Micro and Small Enterprises (MSEs) which is aimed at generating both skilled and unskilled employment. The major aim of this study is to investigate the impact of MC and ET delivered by FNGOs on the performance of MSEs in Ghana. Theoretically, the study adopts both the Institutional Theory and the Resource-Based View theory as the underlying theoretical frameworks, assuming that institutional and resource factors have a great influence on FNGOs in their delivery of MC and ET to MSEs in Ghana. The research design adopted in undertaking this study is based on the pragmatic research philosophy. Specifically, the mixed strategy with an explanatory triangulation method has been used. The mixed method has been adopted purposely for model testing as well as for exploring various issues on FNGOs and their role in the performance of MSEs. Primary data were collected through a quantitative method using a survey as well as through qualitative interviews. Adopting a stratified random sampling method, a total of 720 self-administered questionnaires were sent out in March 2017 to MSEs in the Volta Region of Ghana to collect primary data. Out of the number sent, 506 questionnaires were retrieved generating a response rate of 70.2%. Also, interviews were conducted with 10 MSEs. A multiple regression model was applied in measuring the impact of MC and ET on the performance of MSEs. The findings suggest that firm characteristics such as gender, managers educational level, industry category and business age correlate positively with employment sales and profitability growth which are statistically significant at 1% level. Secondly, the study also found that both MC and ET factors have a significant impact on MSE performance in the areas of employment, sales and profitability at 1% significant level. The qualitative findings also support the model tested in this study in the sense that the combined approach of both MC and ET have a significant impact on MSE performance in Ghana. This study has made two main contributions. Firstly, the provision of MC by FNGOs can only have the desired impact on the performance of MSEs if it is combined with entrepreneurship training, thereby leading to a sustainable employment, sales and profitability growth. Therefore, by using the 506 MSEs financed by FNGOs in the Volta region of Ghana, this study has for the first time in the Ghanaian microfinance landscape tested an empirical model and came out with meaningful findings for effective integration of ET into microfinance to improve the delivery of financial services to MSEs in Ghana by FNGOs and other socially oriented MFIs. The study has therefore developed a practical framework for ensuring that ET is provided alongside the delivery of MC in order to have the desired impact on the performance of MSEs. The study provided implications for policy and practice for making MC and ET more accessible to MSEs to achieve the desired goal of creating employment. Secondly, even though FNGOs play a very important role in providing entrepreneurial finance to MSEs particularly in developing countries, it has received insufficient research attention. This study has, therefore, added to the scanty research available about FNGOs and their contribution to entrepreneurship development and poverty reduction in developing countries.

Submitted by Vanessa Nunes (vnunes@unisinos.br) on 2015-03-21T14:45:25Z No. of bitstreams: 1 MarcosCerveira.pdf: 877240 bytes, checksum: 6372de1d07d1ef6405fc6ed662e77e03 (MD5) / Made available in DSpace on 2015-03-21T14:45:25Z (GMT). No. of bitstreams: 1 MarcosCerveira.pdf: 877240 bytes, checksum: 6372de1d07d1ef6405fc6ed662e77e03 (MD5) Previous issue date: 2013-08-30 / Nenhuma / O Objetivo deste trabalho é avaliar o processo de geração de inovação social e os resultados gerados na vida dos beneficiários do microcrédito produtivo e orientado. Os estudos foram desenvolvidos na Instituição Comunitária de Crédito Porto Alegre Solidária (PORTOSOL). A literatura existente aponta para inovação social como novas formas de fazer as coisas, tendo o seu objetivo para mudança. Olhando para inovação não apenas como produto ou serviço, mas como um processo compreendido por diversas fases. Para atingir os objetivos deste estudo, foi realizada pesquisa exploratória qualitativa, através de entrevistas com os beneficiários do crédito e gestores da entidade, além de observação direta. Esse estudo reconheceu a inovação no microcrédito contribuindo para gerar resultados na vida dos beneficiários, tais como: Empoderamento, resultados financeiros e sensível melhora na qualidade de vida. Em relação ao processo, verificou-se, entre outras coisas, que o resultado gerado é um novo produto ou serviço. No entanto, uma nova estrutura precisará ser criada ou modificada para a tender a demanda gerada. Essa nova estrutura adquire caráter dinâmico, suscetível a constantes modificações para atender aos seus propósitos. / The objective of this study is to evaluate the process of generation of social innovation and results generated in the productive life of beneficiaries and walked microcredit . The studies were carried out in the Community Credit Institution Partnership Porto Alegre (PORTOSOL) . The literature points to social innovation as new ways of doing things , with your goal to change . Looking for innovation not only as a product or service , but as a process comprised of several stages . To achieve the objectives of this study , exploratory qualitative research was conducted through interviews with beneficiaries and managers of credit authority , and direct observation . This study recognized the innovation in microfinance helping to generate results in the lives of beneficiaries , such as : Empowerment , financial results and significant improvement in quality of life . Regarding process , it was observed , among other things, the generated result is a new product or service. However , a new structure will need to be created or modified to meet the demand generated . This new structure acquires dynamic character , susceptible to constant modifications to suit their purposes .

This paper investigates factors that affect gender-based differences in intra-household bargaining power that are reflected in consumption decisions regarding the adoption of green technology. Using data from the Indian Human Development Survey-II and a probit regression analysis, I find that increasing the level of a woman’s education (a proxy for increasing bargaining power) increases the likelihood of her household adopting LPG, the cleanest fuel option available. I also create an experimental design to serve as a next step for future research and target data collection on individual-level factors and environmental outcomes. The setup is for a potential intervention that assesses whether there are gender-based differences in the propensity for men and women to purchase improved cookstoves, given increased access to credit as a means to increase bargaining power in the household.

Limited access to financial services is known as a major constraint to agricultural development (FAO, 2002). Farmers need liquidity to face agricultural expenses throughout the production cycle but mainly at the beginning. Mainstream financial institutions are reluctant to serve the agricultural sector for several reasons. First, they consider the sector to be highly risky with low performance. Also, agricultural activities depend on the weather, they take place in remote rural areas, and commodities prices are volatile. All these aspects make it hard for standard banks to reach their profit goals when lending to farmers. Since microfinance was conceived, it has generated a lot of hope for alleviating poverty in low-income countries. Microfinance provides the poor with access to affordable capital by granting low-income individuals with loans they would not otherwise have access to, because of economic and geographic constraints. The goal of the dissertation is to examine the role and the importance of microfinance in the agricultural sector of developing countries. A survey took place in October 2017, in both rural and urban areas of Benin and involved 750 agricultural households. Three different agricultural zones were selected: the North-East (cotton zone); the Center (tubers and cashew nut zone) and the South (a region with special crops such as vegetables, pineapple, palm tree, exotic plants). The study focuses on agricultural loans. It includes clients of the major microfinance institution in Benin: FECECAM - Faîtière des Caisses d’Epargne et de Crédit Agricole Mutuel. This research contributes to the literature in several ways. The study allows shedding light on the effects of agricultural loans, specifically, on households’ efficiency and labor employment, which are mostly overlooked in the microfinance literature. To overcome selection bias in microcredit evaluation, the research employs a pipeline design. Control and treatment groups consist of individuals who have chosen to participate in the microfinance program. The loan treatment considered is the experience with loans which includes program entry timing, loan take-up frequency, and the average amount of loan obtained over the 2012-2017 period. The study employs a cluster analysis technique to create reliable comparable groups. Multiple variables and indicators are analyzed. A descriptive analysis of loan impact on farmers’ labor input choices shows that past loans have residual effects on both hired and family labor use. Farm loans, especially those obtained for farm machinery significantly reduce expenditure on hired labor but more family labor is employed using machine loans while other loan categories reduced the use of family labor. The evaluation of the whole-farm efficiency of borrowers in the presence of agricultural loans reveals significant technical and allocative errors leading to profit loss in all studied regions. However, experience with loans significantly increases farmers’ whole-farm efficiency, particularly in the North. Finally, the assessment of well-being indicators suggests that those farm loans have a significant positive impact on sampled recipients’ net farm income, food security and food quality statuses. Agricultural loans also have a positive impact on women’s empowerment. The monitoring and implementation mechanism of FECECAM played a crucial role in the success of its loan programs.