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An impact evaluation of the loans offered by Compartamos, the largest microlender in Mexico shows that loan recipients grew their business revenues and expenses, were happier, more trusting, had greater household decision power, and were better able to manage liquidity and risk. However, there was little evidence that loans had an impact on building wealth like household income, business profits, or consumption.

The study adds to the evidence that microcredit is generally beneficial, but not necessarily transformative.

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Published on: 19 May 2013

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