The menace of microfinance

There is no comprehensive research on the benevolent outcomes of microfinance activities.

“Microfinance is not simply banking, it is a development tool”, defined the World Bank 25 years ago. Microfinance activities involve small loans, informal appraisal of borrowers and investment collateral substitutes with group guarantees or compulsory savings, micro-savings and, sometimes, micro-insurance services generally to the populace unbanked by the so-called mainstream financial services and commercial banking.