This influential randomized evaluation by Banerjee, Duflo, Glennerster, and Kinnan analyzes the impact of a microcredit program in Hyderabad, India. It increased credit take-up by 8.4 percentage points, boosted small-business investment and profits, and raised durable goods expenditure, while reducing spending on temptation goods. However, consumption, health, education, and women’s empowerment showed no significant improvements. After two years, differences between treatment and control groups largely dissipated. The study provides nuanced evidence on microfinance’s limited long-term transformative power