Expanding access to financial services is essential for inclusive economic growth and poverty reduction. Yet significant gender disparities remain: in low- and middle-income countries, only 21 percent of women access formal loans or mobile banking compared to 25 percent of men. This capital constraint severely limits women's economic participation through entrepreneurship and other productive activities, undermining their quality of life. While existing research on credit innovations for women provides a solid foundation, IPA produced evidence reviews in 2024 and 2025 revealing that significant knowledge gaps remain.

To address these gaps, IPA seeks to build evidence on effective interventions that expand women's access to productive capital, particularly credit. Our research aims to identify which approaches most successfully increase women's financial access and maximize the resulting benefits for their livelihoods, decision-making autonomy, and overall welfare.

The following projects are funded by IPA's Entrepreneurship & Private Sector Development (EPSD) Program.
 

Digital Interventions to Address Post-Contract Harassment and Over-Indebtedness Fears Among Women Entrepreneurs in Kenya
Researchers: Stephen J. Anderson, Apurva Borar, Arti Grover, Shreya Kankanhalli
Country: Kenya
Partner: Equity Group Foundation
Research Implemented by IPA: No

In low- and middle-income economies, women entrepreneurs face substantial credit gaps, exacerbating overall constraints to business growth and economic development. This project investigates both supply- and demand-side drivers of the gender gap in credit, with a focus on Kenyan entrepreneurs. The researchers plan to conduct two evaluations: (1) testing whether digital data reduces lending bias amongst loan officers, and (2) testing whether algorithmic recommendations and business planning tools increase loan uptake among women entrepreneurs. The study aims to generate rigorous evidence on credit innovations for women entrepreneurs, providing clear policy guidance on scalable strategies to bridge the gender gap in credit access. The results will have broad implications for financial inclusion policies, financial product design, and entrepreneurship support programs globally.

The Impact of Inventory Advances (Zero-Interest Loans) on Women’s Economic Empowerment in India
Researchers: Rajesh Chandy, Heather Kappes, Gaurav Mehta, Om Narasimhan
Country: India
Partner: Dharmalife Labs/Dharmalife Foundation
Research Implemented by IPA: No

In India, researchers will use a randomized evaluation to explore how zero-interest loans, in the form of inventory, can empower rural women entrepreneurs economically and socially. The study also explores the relative efficacy of such loans compared to and combined with general marketing support to make them better salespeople. Researchers will measure impacts on business performance (sales, profits), financial health (income, savings), social outcomes (confidence, agency), and women's economic empowerment. The results are expected to inform scalable models for rural entrepreneurship and financial inclusion.

Leveraging Voice-Based Digital Learning and Generative AI to Enhance Financial Literacy and Credit Uptake among MSME Owners in Tanzania
Researchers: Shreya Bhattacharya, Phillip Roessler
Country: Tanzania
Partner: Viamo
Research Implemented by IPA: Yes

In low-income countries, many people turn to self-employment and microentrepreneurship, such as selling produce, handicrafts, and cooked foods, to generate income. However, subsistence entrepreneurship can be difficult, especially as enterprise owners operate under significant constraints, including limited financial literacy and a lack of capital. Partnering with Viamo in Tanzania, researchers are testing two programs designed to help Micro, Small, and Medium Enterprise (MSME) owners overcome these barriers. One is a voice-based digital training program to increase awareness and understanding of digital credit products and mobile-for-business use cases. The second is a generative AI voice chatbot, AVA, which can serve as a digital skills assistant, business coach, or offer other forms of individualized, real-time guidance as prompted. In a pilot study with 1,200 MSME owners, the study will analyze the individual and combined impact of these interventions on participants’ financial literacy, credit awareness and usage, and entrepreneurial aptitude compared to no intervention. The pilot results will provide insights into the potential of scalable voice-based digital tools to empower entrepreneurs to access credit and leverage it to grow their enterprises.

Market Development vs. Product Development: Growth Strategies to Improve the Impact of Credit Provision in India
Researchers: Rajesh Chandy, Heather Kappes, Gaurav Mehta, Om Narasimhan
Country: India
Partner: Dharmalife Labs/Dharmalife Foundation
Research Implemented by IPA: No

This study investigates how business support interventions can enhance the impact of credit provision on women entrepreneurs in rural India. In addition to offering credit to entrepreneurs, it provides market development support (through improved customer targeting and marketing) and product development support (via product design upgrades and product range expansion). Repayment of the credit provision will be based on the tailor's business performance. Once there is repayment, it will be reinvested in giving working capital support to the tailors. Outcomes examined include sales profits, loan acceptance and repayment rates, as well as confidence and agency among entrepreneurs. Results will inform scalable approaches for women's entrepreneurship development.

Measuring the Impact of Low Interest Rate Loans for Market Vendors in Tamil Nadu, India
Researchers: Natalia Rigol, Ben Roth, Natalie Theys
Country: India
Partners: J-PAL South Asia and Sanghamithra Rural Financial Services
Research Implemented by IPA: No

Researchers will implement a survey at the end of an ongoing randomized evaluation to evaluate the impacts of a new loan product designed specifically for market vendors, called Tatkal-M, in Tamil Nadu, India. This product replaces far more expensive credit supplied by the informal sector and offers short repayment periods, but at a significantly lower interest rate. Researchers focus both on overall impact, given this product is the first of its kind, and the impacts specifically on women, who make up approximately 30 percent of borrowers. Researchers will also explore why initial results in the middle of the intervention suggest women are more likely than men to divert the loan for non-business purposes, and if there are product modifications that could address this.

Repaying Loans with Mobile Money Increases Women’s Empowerment in Tanzania
Researchers: Rachel Heath, Emma Riley
Country: Tanzania
Partner: BRAC Tanzania Finance Ltd
Research Implemented by IPA: Yes

This study in Tanzania conducts a follow-up survey involving 750 women who previously participated in a study examining how using mobile money to repay microfinance loans affects women's empowerment compared to using cash.  Shifting to mobile money for loan repayment substantially increases women’s use of other types of transactions. As women’s control over their finances increases, they have higher levels of empowerment in the household, and expenditures shift towards goods plausibly aligned with their preferences. This survey will follow up with the same women three years after the start of the project to understand the persistence of the positive effects seen after one year.

Targeted, Flexible Microcredits: Thozhil Valarchikana Kadan (TVK) Graduation Loans in India
Researchers: Natalia Rigol, Ben Roth, Natalie Theys
Country: India
Partner: Sanghamithra Rural Financial Services
Research Implemented by IPA: No

This project evaluates the impact of a new loan product - Thozhil Valarchikana Kadan (TVK). TVK is two to three times larger than a typical microfinance loan, and is targeted at borrowers who have taken near the maximum loan size and now seek larger loans to make capital investments or grow their businesses. The loans also have flexibility features, including repayment frequency options and the ability to take a grace period. Researchers will conduct a randomized evaluation in Tamil Nadu, India to evaluate the impact of the product on women's business activity, income generation, and empowerment, as well as ripple effects to non-borrowers. This work seeks to generate the evidence needed to prove TVK’s impact and financial viability, ultimately making the case for the partner microfinance institution (MFI) to scale the product and provide a model for other MFIs.

Wholesale Financing and Affordable Credit for Women Entrepreneurs
Researchers: Thorsten Beck, Matilde João Mota, Samir Kiuhan-Vásquez
Country: Africa and South Asia (India, Bangladesh, Pakistan, Kenya, Tanzania, Rwanda, Uganda, Ethiopia, and Senegal)
Partner: N/A
Research Implemented by IPA: No

This study aims to address critical policy issues surrounding access to wholesale debt markets by microfinance institutions (MFIs) and commercial banks in Africa and South Asia (India, Bangladesh, Pakistan, Kenya, Tanzania, Rwanda, Uganda, Ethiopia, and Senegal). These are crucial funding sources that influence credit supply, particularly in underdeveloped financial markets and for marginalized borrowers. As the initial stage of a broader research initiative, the study aims to investigate the determinants of access and costs associated with wholesale funding, exploring the literature on the subject, presenting stylized facts on particular jurisdictions, and analyzing the potential role of risk-sharing mechanisms. This exploration is essential for enhancing the financial sector's deepening and facilitating targeted credit provision, especially for small and medium enterprises and women entrepreneurs in low- and middle-income countries.

Women at the Wheel: Asset Financing to Empower Women in the Transportation Sector in Pakistan
Researchers: Kashif Zaheer Malik, Muhammad Meki, Simon Quinn, Farah Said, Willem Wilken 
Country: Pakistan
Partner: National Rural Support Programme and Rural Community Development Programmes (RCDP)
Research Implemented by IPA: No

Pakistan has one of the lowest female labor force participation rates globally, with unsafe public transportation limiting women’s mobility and employment opportunities. This study implements asset financing products to help women enter the male-dominated transport sector. A total of 1,000 women will be randomly assigned to one of two groups offering financing for high-quality rickshaws or to a comparison group offering a standard microfinance contract. The first financing contract is a traditional debt contract, while our second offers enhanced risk sharing through performance-linked repayments based on the driver’s distance traveled. The study aims to evaluate the program’s impact on women’s income, mobility, and agency.