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 through the Gates Foundation.
 

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 conduct a randomized evaluation to examine how zero-interest loans, provided in the form of inventory, can empower rural women entrepreneurs economically and socially. The study also explores the relative effectiveness of such loans alone and in combination with general marketing support in improving sales capabilities. 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- and middle-income countries (LMICs), self-employment drives the livelihoods of the majority, yet micro, small, and medium-sized enterprises (MSMEs) often face critical barriers, including low financial literacy, limited access to credit, and underdeveloped entrepreneurial skills. This pilot study explores the potential of innovative digital learning tools and generative AI technologies to address these challenges among MSMEs in Tanzania. In partnership with Viamo, a leading provider of mobile learning solutions, the study tests two interventions: interactive voice-based learning modules to build financial literacy and business skills, and “AVA,” a generative AI voice chatbot offering personalized, real-time guidance in local languages. Using a randomized controlled trial with 3,000 MSMEs, the research evaluates the impact of these interventions on financial literacy, credit adoption, and entrepreneurial capacity. By combining survey and administrative data, the study aims to provide actionable insights into the scalability and transformative potential of digital tools to enhance financial inclusion and drive enterprise growth in LMICs.

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

In collaboration with IPA Tanzania and BRAC Tanzania, researchers conducted a randomized evaluation that found that women who used mobile money to repay loans increased their usage of mobile money for other purposes. This increased usage in turn increased women’s empowerment, primarily through greater control over their finances and decision-making power in the household.

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 flexible 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 borrowers’ customers and employees. 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, such as women. Thus, the study focuses on MFIs’ funding sources and their ability to scale affordable credit offerings for women while balancing financial sustainability, regulatory compliance, and social impact in diverse institutional and cultural contexts. As the initial stage of a broader research initiative, the study explores the literature on the subject, presents stylized facts for particular jurisdictions, and analyzes the potential role of risk-sharing mechanisms. This exploration is essential to deepen the financial sector and facilitate targeted credit provision, especially for small and medium enterprises and women entrepreneurs in low- and middle-income countries. Finally, the study explores available data sources for further research and associated challenges.

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.