IS MICROCREDIT A DEBT TRAP
Microcredit has help the poor to make progress in their businesses, but unfortunely most microcredit client especially in developing economy have been very insincere in their request for such credit,most have prefer to use such funds for other pressing needs instead of first function it was meant for.

microfinance
Surely,as in the case of everytihng there always are two extreames. We should or we do balance for better result. Don't we ?
Theory of microfinance do emphasize the need to educate the poor to utilise funds wisely. What the GRAMEEN BANK case study says ? Isn't is POSITIVE enough to initiate GRAMEEN BANK model else where in the world ? To uplift life of nearly half of the world's population ?

micro credit
The problem lies in providing repeat loans to the existing clients without assessing their capacity to repay. Ms. Gadham's comment that default is not in the interest of the lender is a very commercial outlook. MFIs claiming to operate in the interest of the asset-poor and the uneducated should take the onus for ensuring that they do not become the cause for default. By competing to give loans, they put the poor at risk and destroy the loyalty the borrowers had in repaying the loans initially.