Few studies have rigorously quantified the impacts of microcredit loans on the beneficiaries and their communities. Seeking to fill this gap, IPA has partnered with Compartamos Banco to evaluate the social and economic impact of their principal village banking loan product. The study will measure outcomes at both the individual and community level, and will estimate the impact on microenterprise growth, beneficiary income, credit and savings behavior, as well as health and other factors.

The study is implemented in 250 communities in northern Mexico, where Banco Compartamos has had no previous presence. 125 of these 250 communities are randomly assigned to receive direct promotion of the village banking loan product (treatment group) and the other 125 communities do not receive any direct promotion (control group).