In its simplest definition, microfinance refers to small loans usually worth less than $1,000 for people with low incomes. Microfinance is a widely discussed idea in development circles, particularly surrounding women’s empowerment. But how effective is it?

On this episode of the Hidden Economics of Remarkable Women, we look at why microfinance has had mixed results and learn about the best ways to distribute these kinds of loans. First, we talk to a Turkish Grameen Foundation/Kiva microcredit recipient named Kudret about the impact microfinance has had on her personally. Then, Roshaneh Zafar speaks with host Reena Ninan about her experiences launching the Kashf Foundation, the first microfinance institution in Pakistan and the largest loan provider to women in the country.

Special thanks this week to Stephen Rasmussen from the Consultative Group to Assist the Poor, who recommended FP talk to Zafar. Also, thanks to Aslıhan Köksal and Brit Heiring from Kiva, Andrée Simon from FINCA, and a number of others who spoke to us for this episode. The Hidden Economics of Remarkable Women is a Foreign Policy podcast made possible through funding by the Bill & Melinda Gates Foundation.

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