Microcredit has been found to be a critical instrument in order to improve the livelihood of the poor. It is prominently used to improve the livelihood of the household borrowers where it is believed to be under exploited in research. Hence, it is indispensable to examine its real effectiveness and to have sufficient information on the economic and social impact indicators (human capital). For the purpose of assessing the impact of DECSI microcredit on the livelihood of borrower households, a sample of 278 respondents (that is, 123 clients who had at least 3 years of attachment to the organization and 155 eligible non-participants representing the characteristics of the existing sample borrowers) was considered for the present study. Data were collected by using a semi-structured questionnaire that was prepared and distributed for both clients and eligible non-clients and the oral interviews were conducted while the questionnaires were filled out by the respondents. The results of the study revealed that microloan participation had a positive significant average effect on households' average monthly income, consumption expenditure, savings, and housing improvements. However, the number of employment opportunities generated for the household members showed not much of a difference. Whereas, the average effect on children's education and medical care expenditure was positive due to the respondents' participation in the microcredit program.

1. Amha, W. (2000). Review of microfinance development in Ethiopia: Regulatory framework and performance. Occasional paper No.2. Retrieved from <a href=http://www.microfinancegateway.org/p/site/m/template.rc/1.9.24726/ target="_blank">http://www.microfinancegateway.org/p/site/m/template.rc/1.9.24726/</a>
2. Chowdhury, M., Mosley, P., & Simaowitz, A. (2004). Introduction. Journal of International Development, Special Issue: The Social Impact of Microfinance, 16 (3), 291-300. DOI: 10.1002/jid.1087
3. Ghalib, A. K. (2007). Measuring the impact of microfinance intervention: A conceptual framework of social impact assessment. The Singapore Economic Review Conference. August 2-4, 2007 Singapore, Retrieved from <a href=https://editorialexpress.com/cgibin/conference/download.cgi?db_name=SERC2007&paper_id 155 target="_blank">https://editorialexpress.com/cgibin/conference/download.cgi?db_name=SERC2007&paper_id 155</a>
4. Glazer, S. (2010). Evaluating microfinance. CQ Global Researcher, 4 (4), 81-96, 98.
5. Gobezie, G. (2004). Microfinance development: Can impact on poverty and food insecurity be improved upon? Paper presented at the International Conference on Microfinance Development in Ethiopia, January 21-23 2004, Awassa, Ethiopia.
6. Meehan, F. (2000). Poverty alleviation and institutional context. Relief Society of Tigray. Microfinance Development Review of AEMFI, 1(1), 21-27. Retrieved from: <a href=http://zunia.org/sites/default/files/media/node-files/se/149353_session1.pdf target="_blank">http://zunia.org/sites/default/files/media/node-files/se/149353_session1.pdf</a>
7. Messele, S. (2002). Historical background, status and perspectives of microfinance institutions in Ethiopia (Master of microfinance, Thesis). Director of Rural Microfinance Program in Agricultural, Environmental and Development Economics Department, OHIO State University, Italy.
8. Pitt, M. M., & Khandker, S. R. (1998). The impact of group-based credit programs on poor households in Bangladesh: Does the gender of the participants matter? The Journal of Political Economy, 106 (5) 958-996.
9. Sengupta, R., & Aubuchon, C. P. (2008). The microfinance revolution: An overview. Federal Reserve Bank of St. Louis Review, 90 (1), 9-30.
10. Swope, T. (2010). Microfinance and poverty alleviation. Rollins Undergraduate Research Journal, 2 (1), Article 9. Retrieved from <a href=http://scholarship.rollins.edu/cgi/viewcontent.cgi?article=1006&context=rurj target="_blank">http://scholarship.rollins.edu/cgi/viewcontent.cgi?article=1006&context=rurj</a>
11. Yunus, M. (2004). Banker to the poor: Micro-lending and the battle against world poverty. New York: PublicAffairs.