ABSTRACT
Notwithstanding the importance of microfinance as an instrument for poverty reduction, there is a growing consensus among microfinance practitioners and donors that financial performance does not automatically correspond with positive impacts. More specifically, the issue of household financial vulnerability, which is a specific form of social impact, is a matter of great concern. The worry is that microfinance and, in particular, micro-credit might leave some people worse off by pushing them into debt beyond their repayment capacities (Hulme 2007).
