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Abstract

The main purpose of this paper is to study if two major microcredit programs, namely Women Microcredit Funds (WMF) and Self-Help Groups (SHG), in Southern Iran reach rural poor and vulnerable households. We use primary panel data that consist of monthly consumption and income information for 280 households. The results showed that although both programs are successful at reaching poor, evidence on propensity of vulnerable households joining programs is relatively limited. Furthermore, results indicate that vulnerable households are more likely to join SHG, while poor households mostly choose to join WMF program.

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