Microfinance Engagements of the ‘Graduated’ TUP Members

This study takes a look at the beneficiaries who were selected at the first round in 2002 to explain various dimensions of their engagement with microfinance. With a lower borrower-member ratio and relatively smaller sized credit, microfinance for the poorest may take longer to achieve sustainability. Even within the ultra poor household group, the better-off ones are more likely to engage themselves with microfinance. Their engagement in semi-formal microfinance does not reduce involvement in informal financial market. Along with credit, accumulating savings is of utmost importance for the ultra poor households and their informal savings have increased. Given that almost a quarter of the TUP members may not be credit takers, the importance of appropriate savings products cannot be overemphasized. More innovations in this regard is thus critical.[Working Paper Series No. 9]