Micro-credit programmes have emerged as an antipoverty instrument in many l
ow-income countries. They target the poor, especially women, with financial
services to help them become self-employed in rural non-farm activities of
their choice. In contrast, micro-credit programmes of the village banks su
pported by Accion International or Women's World Banking provide financial
services in response to market failures in which formal financial instituti
ons failed to cater financial services to small- and medium-scale enterpris
es. No matter whether they are instruments for poverty reduction or market
failure, micro-credit programmes practice financial intermediation for thei
r targeted clienteles. The article reviews the methodologies practiced to e
valuate micro-credit programmes, provides a unified framework for anlaysis,
and discusses future research directions.