How Kiva partners are driving financial inclusion: Key takeaways from the latest global report

February 27, 2025

By: Beth Kinyanjui

Christian used a Kiva loan through partner MiCredito to open a beauty salon in Nicaragua.

New data reveals how microfinance is expanding access, fostering resilience, and supporting underserved entrepreneurs worldwide.

What you’ll learn in this article:

Measuring impact: The 60 Decibels Microfinance Index, now in its third year, provides valuable insights into the impact of microfinance worldwide.
Kiva’s expanded role: More Kiva partners participated in the report than ever before, increasing the reach and depth of the findings.
First-time borrowers: Most clients were accessing loans for the first time, showing Kiva partners’ commitment to reaching underserved communities.
Sustainable income: The majority of borrowers repaid their loans using business income, demonstrating the effectiveness of microfinance in supporting long-term financial stability.
Climate resilience: A new survey area found that 34% of relevant clients improved their ability to adapt to climate shocks through their engagement with a microfinance partner.

Kiva is committed to understanding and improving its impact on the livelihoods of those we support worldwide, with a focus on underbanked women, climate-threatened communities, displaced people, and marginalized U.S. entrepreneurs. By gathering direct feedback from those we serve, we learn how financial and non-financial services meet their needs and how they can be improved.

Kiva’s involvement in the 2024 Microfinance Index study

The offers one of the most comprehensive looks at the impact of microfinance organizations worldwide, drawing directly from the voices of borrowers. Since its inception in 2022, Kiva has participated in the study, which reveals key insights into the impact of microfinance.

In 2024, 55 Kiva partners from 31 countries were featured, more than doubling the number participating in 2023. Feedback was gathered from over 14,500 borrowers of Kiva Lending Partners, up from 5,550 in 2023, with 64% of them being women. Additionally, for the first time, more than 1,900 borrowers shared insights into their experiences with climate-related financial products and services.

This year, 60 Decibels (60dB) recognized the top three best-performing Financial Service Providers (FSPs) in each region for their contributions to social impact—and several Kiva partners were honored for their outstanding work. MiCrédito, S.A. in Nicaragua was awarded the best provider in creating social impact among its clients, based on its exceptional performance, exceeding global and Latin American social impact benchmarks. Other Kiva partners ranking in the top three in their regions included FUNDENUSE in Nicaragua (Latin America), Agora Microfinance in Zambia (Africa), and Koperasi Syariah Benteng Mikro in Indonesia (Asia). This recognition highlights the continued relevance and impact of their work within their communities.

Key findings and learnings from Kiva partners

The report assesses financial service providers across multiple key dimensions, including:

Access, which examines how well financial services reach underserved populations;
Business impact, which measures how loans contribute to income growth and stability;
Household impact, capturing improvements in quality of life;
Financial resilience, evaluating clients' ability to manage financial shocks; and
Client protection, ensuring responsible lending practices.

Here are some of the key findings for Kiva’s Lending Partners across these dimensions.

1. Growth in income and financial stability

86% of loans were used for business purposes, demonstrating both borrowers' dedication to improving their livelihoods and Kiva partners' efforts to provide relevant and impactful financial services. And it’s working — 88% of borrowers reported an increase in income, and 75% reported using business income to repay their loans, reflecting the effectiveness of the loans in generating sustainable income.

Interestingly, clients who accessed financial services through group lending were more likely to report an increase in income compared to those taking a loan individually, emphasizing the potential benefits of collective financial support structures.

2. Job creation in local communities

15% of borrowers from Kiva partners reported an increase in the number of paid employees in their businesses—significantly higher than the global benchmark of 10%. While the majority (68%) of borrowers reported having no paid employees, reflecting the small-scale nature of their businesses, notable gender differences emerged. Women were more likely to report not having paid employees, with 8 out of 10 women indicating this, compared to 5 out of 10 men. Furthermore, 24% of male borrowers reported increasing their number of paid employees — more than double the global benchmark —while only 10% of female borrowers reported the same.

These findings highlight the need for greater financial and non-financial support for women-owned businesses to help them scale. Expanding access to such resources can lead to increased income, business growth, and long-term financial stability.

Lucy, a farmer in Kenya, took a loan to purchase modern farm inputs, including high-quality seeds and fertilizers, so she can enhance crop production and secure a better future for her family.

Lucy, a farmer in Kenya, took a loan through Lending Partner Juhudi Kilimo to purchase modern farm inputs, including high-quality seeds and fertilizers, to enhance crop production and secure a better future for her family.

3. Improved quality of life

“I used to have one room, but now with the profits I've made from the loan, I've been able to build a business and have 4 rooms where I can welcome my guests. I also have a son who was ill, and it's with the money I've earned from my savings I've been able to take him to the hospital, and now he's better.”
- Anonymous borrower from the Microfinance Index study

To assess the broader impact of financial services beyond business growth, borrowers were asked to share the extent to which their household's well-being had improved. Nearly 9 out of 10 borrowers reported that their quality of life had improved, primarily driven by increased business income.

Borrowers highlighted key areas where they saw improvement in their lives, including the ability to:

Invest more in their businesses,
Cover household expenses,
Spend more on their children's education, and
Make home improvements.

Notably, the majority of Kiva partners performed above the global benchmark. Kiva partner Caurie, for example, saw nearly all (97%) of its borrowers report an improvement in their quality of life.

“As a hairdresser, I use this credit to purchase cosmetic products in bulk, and by selling these products, I generate extra income. The credit I obtained has had a positive impact overall in my life. I am already a self-confident individual due to being self-employed. Having access to cash through this loan program allows me to buy these products in bulk, offering peace of mind. Additionally, I can make a profit from selling these products and cover some of my daily expenses.”
- Anonymous borrower from the Microfinance Index study

4. Strengthened financial management and business skills

To gauge how resilient they are to unforeseen economic shocks, borrowers were asked to share how their financial management skills had changed since working with the partner.

85% of clients reported an improvement in their financial management skills. In addition to the loans they received, 42% of borrowers indicated that they received non-credit services such as savings, insurance, and financial training or education. These additional services have significantly enhanced their financial management capabilities.

“The partner offers training to their clients, which is so important, especially to the new entrepreneurs with start-up businesses, because they learn a lot of skills and techniques about how to tackle challenges, they mostly face during the first stage of business implementation, like learning the market and financial and even the management of their business in general.”
- Anonymous borrower from the Microfinance Index study

5. Higher savings rates, especially among women and group borrowers

Also key to understanding clients' preparedness for unforeseen economic shocks is understanding their ability to save. When asked about changes in their savings due to working with the FSP, approximately 65% of borrowers reported an increase in their savings.

Notably, 7 out of 10 clients who accessed services through group lending were more likely to report increased savings, compared to 6 out of 10 clients who accessed services through individual lending. Additionally, women were more likely than men to report increased savings, a trend that may be attributed to their higher participation in savings groups.

Some partners highlighted how local economic conditions influenced borrowers, emphasizing the need to contextualize macroeconomic factors when conducting the survey. This approach helps avoid assumptions that an FSP’s services are ineffective, instead ensuring that results are aligned with the prevailing economic conditions at the time of data collection.

“The survey was conducted during a critical period marked by high inflation and a declining currency. Could these economic conditions have adversely affected the survey results, considering the significant experiences customers have faced? Amount saved is one of the financial factors affected the most. The majority of the clients were more focused on satisfying basic household needs.”
- A Kiva Lending Partner

Feride in Turkiye took a loan to increase supplies for her store.

Feride, a shop owner in Türkiye took a loan through Lending Partner Turkish Grameen Microfinance Program to increase supplies for her store.

6. Commitment to client protection and transparent lending

55% of clients were first-time borrowers, reflecting the commitment of Kiva partners to expanding financial access for underserved populations. Ensuring that these borrowers—especially the most financially vulnerable—are protected is essential.

Encouragingly, 9 out of 10 borrowers reported that they understand the fees, interest rates, and penalties associated with the services offered by Kiva partners. This strong level of awareness indicates that borrowers are well-informed about the terms of their loans.

Notably, almost all (97%) of Lending Partner MiCredito’s borrowers confirmed a clear understanding of these terms, underscoring the dedication of Kiva partners to transparency and responsible lending. By prioritizing borrower education, these institutions help protect clients from potential financial risks while fostering sustainable financial practices.

7. Increase in confidence and ability to make financial decisions

To assess the impact on borrowers' confidence and financial decision-making ability, they were asked whether their confidence and ability had changed because of working with the partner. 82% of clients reported an increase in confidence. Notably, this was higher among clients using a group lending methodology (87%) compared to those using individual lending (79%).

Additionally, almost 7 out of 10 clients reported an improvement in their ability to make financial decisions—such as whether to save or spend—because of the partner. This effect was more noticeable among clients with a tenure of less than two years (70%) compared to those with more than two years (63%).

8. Building climate resilience

Several Kiva partners participated in an optional survey category designed to assess whether they have influenced their clients' ability to cope with and prepare for climate shocks. Over 1,990 borrowers from seven Kiva partners shared their perspectives on climate-related issues.

When asked if they had experienced climate-related shocks in the past 24 months (at the time of the survey), approximately 40% of respondents reported facing challenges such as drought or lack of rainfall, pest infestations, crop diseases, landslides, and soil erosion. Notably, women borrowers were more likely to report experiencing climate-related shocks, with 58% affected, compared to 42% of male borrowers.

Next steps

The 2024 Microfinance Index saw a significant number of Kiva partners participating for the first time, providing a valuable opportunity for them to hear directly from their clients and refine their strategies and products to better meet their needs.

After the survey, partners shared their feedback on their experience, with some quoting that the survey was a major investment in their work.

“The survey with 60dB is an investment to us. Without the survey, we would not know if we are really generating well-being. The survey was very well aligned with our plans to roll out surveys to collect feedback from our clients.”
- A Kiva Lending Partner

“We have lectures and programs we’ve been doing specifically for women’s empowerment. These programs are expensive, so it’s great to see a justification for this effort in the outcomes of women feeling empowered to make financial decisions. This is the change that we want to be seeing in our clients and our culture.”
- A Kiva Lending Partner

However, some partners faced challenges in interpreting and utilizing outcome-level data, as they are primarily accustomed to collecting output-level data.

To address this, Kiva’s Impact team conducted feedback sessions with several of the 2024 survey participants to understand their experiences and identify the support needed. Many partners have requested assistance in integrating outcome-level data from the survey into their operations for strategic decision-making.

Recognizing this need, Kiva is holding training sessions with our Investment team to help equip partners with the skills needed to interpret data effectively and align insights with their strategies. Additionally, these sessions will contribute to broader capacity-building initiatives aimed at helping partners maximize their impact.

Looking ahead, we’re also exploring new strategies—informed by partner feedback—to enhance our participation in the 2025 60 Decibels survey, ensuring the next round of insights is even more actionable and impactful.