This paper reports on a randomized evaluation of a group-lending microcredit program in Hyderabad, India, conducted by Spandana, one of the fastest-growing microfinance institutions in the country. The study found that the program increased the take-up of microcredit by 8.4 percentage points compared to control areas, leading to increased investment and profits in existing businesses but no significant increase in consumption. The impact on durable goods expenditure was positive, while expenditure on "temptation goods" decreased. After two years, when control areas also gained access to microcredit, the differences between treatment and control areas were minimal. The study also found no significant changes in health, education, or women's empowerment. The results suggest that microcredit may help some households make different intertemporal choices in consumption and support the expansion of existing businesses, particularly the most profitable ones. However, the overall impact on business creation and profitability was limited, and the study highlights the need for more rigorous evaluations in different contexts to understand the broader implications of microfinance programs.This paper reports on a randomized evaluation of a group-lending microcredit program in Hyderabad, India, conducted by Spandana, one of the fastest-growing microfinance institutions in the country. The study found that the program increased the take-up of microcredit by 8.4 percentage points compared to control areas, leading to increased investment and profits in existing businesses but no significant increase in consumption. The impact on durable goods expenditure was positive, while expenditure on "temptation goods" decreased. After two years, when control areas also gained access to microcredit, the differences between treatment and control areas were minimal. The study also found no significant changes in health, education, or women's empowerment. The results suggest that microcredit may help some households make different intertemporal choices in consumption and support the expansion of existing businesses, particularly the most profitable ones. However, the overall impact on business creation and profitability was limited, and the study highlights the need for more rigorous evaluations in different contexts to understand the broader implications of microfinance programs.