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Microcredit schemes as a tool for (in the words of the Norwegian Nobel Committee in 2006) "economic and social development from below", poverty reduction and empowerment have recently moved into the focus of attention of the global community. Much light, how ever, remains to be shed on the internal dynamics of microfinance programmes.
The objective of this study is to gain insight into the under-researched question of how the provision of microcredit is perceived by the target-group at the grass roots level, by people who pursue their livelihood strategies in a pragmatic fashion, oblivious of the theo retical constructs and imperatives behind the loans they receive. A better understanding of the needs of the prospective clients is ne cessary in order to reach the target-group more effectively and in crease the impact of the respective programmes. How do rural far mers and prospective microcredit clients perceive the services and how do they use them? What influences their investment decisions and what impact does the provision of microcredit services have on a household's livelihood? These are some of the questions this study strives to answer.
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