40 percent to 25 percent. This represents a significant improvement on the borrowing terms as informal sources were reported to charge interest rates of above 36 percent, sometimes even up to 200 percent for short-term loans. This compares unfavorably to the 14 percent and 41 percent charged respectively by MFIs. Incomes In addition, 70 percent of the supported enterprises reported an increase in income as a result of micro-credit - by ‘taking advantage of working capital to diversify or improve the quality of goods’, or through savings by making seasonal bulk purchases. In the urban sample, part of this diversification was directed at manufacturing (10 percent) and new non-farm enterprises like a small shop or handlooms (25 percent). On the other hand, clients in the rural sample invested proportionally between agriculture, animals and non-farm activities like a milch animal. This has helped to reduce the dependency of farmers to seasonal incomes and encourages ‘grass roots level’ entrepreneurship. At the same time, investment into insurance has also helped farmers to hedge against the risk of seasonal difficulties, like an extended monsoon season. Women and Education Around 17 percent of the clients with school-age children made borrowings to meet schooling costs, thus opening up new opportunities for social mobility. At the same time within the SHGs, women gain a sense of self-respect and confidence from a collective sharing of experiences and common action. Also, they becoming increasingly involved in joint enterprise management with men, reported in 71 percent of the supported enterprises in the south and 39 percent in the north. This joint-income household pattern helps to alleviate the income burden on men and contributes towards the drive from poverty. References Microfinance organizations